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Russia rouble steady, stocks hit 7-month high

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Indian rupee, Thai baht, South Korean won weaken against dollar

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Israel shekel flat ahead of central bank decision

April 3 (Reuters) - Emerging market stocks were set to snap four sessions of gains on Monday, with Turkish shares near a two-month low as prices of oil surged after surprise OPEC+ output cuts, while crude exporter Russia's stocks jumped.

The Organization of the Petroleum Exporting Countries and their allies including Russia announced further oil output cuts of around 1.16 million barrels per day, sending crude prices surging nearly 6%.

The move sparked worries that it could aggravate elevated levels of global inflation and dampened a rally sparked by a slowdown in U.S. prices.

The MSCI's index for EM stocks fell 0.3% after gaining 3.5% last quarter, while Turkey's BIST 100 index slipped 1.3% hitting its lowest since early February. The lira also dipped 0.2% against the dollar.

The Indian rupee, Thai baht and the South Korean won all fell, with the won set for its worst day in almost a month.

"It's not that favourable to emerging market currencies because it's going to accelerate a return to those worries related to the upside risk on inflation," said Sébastien Barbé, head of EM research & strategy at Credit Agricole CIB.

"The kind of relief that we have had in emerging markets, including in EMEA, its being eroded and we may have a little bit more of a defensive stance because some countries have an oil import bill which is quite significant."

Russia's benchmark rouble-denominated MOEX index rose 0.7%, hitting its highest level in seven months, while its dollar-based RTS index added 0.4%. The rouble also firmed against the dollar in Moscow trade.

Poland's WIG 20 index hit a three-week high after jumping as much as 1.8%, boosted by oil and gas services provider PKN Orlen rising as much as 4.5%.

Data showed Poland's manufacturing decline accelerated a touch in March, while a deep contraction in the Czech Republic also continued as recovery was slow to take hold in central Europe.

International bonds issued by oil exporters Angola and Nigeria jumped more than 1 cent.

Later in the day, Israel's central bank is expected to raise short-term interest rates by a quarter-point to a 16-year high. The shekel was flat against the dollar.

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 Shreyashi Sanyal and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta)