* U.S. Fed to start two-day policy meeting
* S.African miners falter as gold prices halt rally
* Moderna, Pfizer start COVID-19 vaccine trials
* EM currencies pressured as dollar bounces
July 28 (Reuters) - Developing world stocks climbed on
Tuesday, with rising bets of a dovish stance from the U.S.
Federal Reserve to support the world's biggest economy, while
South African gold miners slipped as prices of precious metal
retreated from record highs.
Markets are anticipating a dovish stance from the Fed as it
gears up for its two-day policy meeting starting on Tuesday,
while Washington prepares to hammer out a $1 trillion
coronavirus aid package.
"Even if tomorrow is unlikely to be the right moment for a
more expansionary monetary policy approach, the Fed will no
doubt sound prepared for further easing," said Esther Reichelt,
an FX & emerging markets analyst at Commerzbank.
The upward momentum in stocks was also supported by Moderna
Inc and Pfizer Inc's launches of two
30,000-subject trials of COVID-19 vaccines on Monday that could
clear the way for regulatory approval and widespread use by the
end of this year.
The MSCI's index for emerging market equities
gained 0.8%, rising for the second straight day with most gains
made in Asian markets.
A recent rally in the precious metal market stalled, with
gold prices scaling back from record highs against a
Gold miners in South Africa, including Gold Fields Limited
, AngloGold Ashanti and Sibanye Stillwater
, fell between 3% and 5%.
South Africa's main stock index also declined, with
local investors focusing more on offshore events, despite the
International Monetary Fund's approval of $4.3 billion in
emergency financing for South Africa on Monday, to help address
the challenges of the coronavirus pandemic.
As the greenback crept higher, most emerging market
currencies slipped, with the Russian rouble, Turkish lira
and South African rand weakening between 0.5% and
Turkey's BDDK banking watchdog said it will exempt
international development banks from some restrictions on access
to lira liquidity.
The international developments banks that open a lira
account with domestic banks will be allowed to conduct swaps
transactions involving buying lira with the Development
Investment Bank of Turkey, and in the FX swap market at the
Currencies in central and eastern Europe, including Hungary
, Poland, Romania and the Czech
Republic, were mostly flat against the euro.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Shreyashi Sanyal in Bengaluru, editing by Ed