* Fed Chair Powell's testimony due 1400 GMT
* South Africa's consumer inflation slows in May
* Turkish June manufacturing confidence falls
* EM stocks, FX at over one-week low
June 21 (Reuters) - Emerging market stocks traded at their lowest in more than a week on Wednesday after the lack of new stimulus measures from China depressed sentiment, and currencies fell as the dollar firmed ahead of Federal Reserve Chair Jerome Powell's testimony.
MSCI's emerging market stocks index was down 0.9% by 0822 GMT, falling for the third session in a row, weighed down by declines in mainland China and Hong Kong equities.
China's yuan weakened to a seven-month low against the dollar, a day after a smaller-than-expected rate cut from the country's central bank disappointed investors who had hoped for a stronger stimulus package to revive growth in the world's second largest economy.
Further denting sentiment and sparking geopolitical concerns, U.S. President Joe Biden called Chinese President Xi Jinping a dictator on Tuesday.
EM currencies dropped 0.2% and were also at a more than one week low against a firm dollar, with analysts expecting Fed Chair Jerome Powell to strike a hawkish tone at his appearance before Congress later in the day.
"After the Fed’s decision to hold rates steady alongside a revised Dot Plot, money markets have created a disconnect with these revisions causing investor uncertainty. Fed Chair Powell may likely reiterate the hawkish bias that markets are currently so dismissive of, leaving EMs exposed to the downside," said DailyFX analyst Warren Venketas.
The South African rand inched 0.1% higher as investors assessed data showing headline consumer inflation slowed more than expected in May, to 6.3% year-on-year.
While stubborn core inflation in South Africa remains a concern, "from a singular lens, the release was a net positive for doves and may lead the SARB (South African Reserve Bank) to seriously consider a rate pause in their next meeting," Venketas said.
The Turkish lira was slightly weaker at 23.595 to the dollar. Business confidence among Turkish manufacturers fell to 108.2 points in June, data showed.
Among central and eastern European currencies, the Czech crown inched 0.1% higher against the euro with its central bank holding a monetary policy meeting later in the day.
Elsewhere, the International Monetary Fund is encouraged by the "significant progress" in discussions between Zambia and its official creditors, and an agreement could be reached "within a few days," the fund said in a statement on Tuesday.
For GRAPHIC on emerging market FX performance in 2023, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2023, see https://tmsnrt.rs/2OusNdX
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For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see (Reporting by Amruta Khandekar; editing by Barbara Lewis)
