EMERGING MARKETS-Trump's auto tariffs hit EM stocks, currencies steady

By Shashwat Chauhan

March 27 (Reuters) - Most emerging market stocks turned lower on Thursday after U.S. President Donald Trump announced new tariffs on auto imports, while currencies were broadly steady as investors assessed the risks of a global trade war.

Stocks and currencies in emerging Europe were broadly lower, with MSCI's gauge for Eastern Europe .MIME00000PUS falling 0.2% after Trump unveiled a 25% tariff on imported vehicles, which will take effect on April 3, a day after he plans to announce reciprocal tariffs.

Among currencies, Hungary's forint EURHUF= weakened 0.3% against the euro, while Poland's zloty EURPLN= shed 0.2%.

A broader gauge for emerging market stocks .MSCIEF also dipped 0.2%, though gains in heavyweight China .CSI300 helped mitigate some losses.

Stocks in South Korea .KS11 lagged, with automakers like Hyundai Motor 005380.KS and Kia Corp 000270.KS logging sharp declines, while Indian automaker Tata Motors TAMO.NS and auto parts makers were also swept up in the selling pressure.

The global currencies market, however, remained sanguine early on, as Trump also hinted that reciprocal tariffs will be "very lenient".

"Perhaps the FX market is dealing with tariff fatigue, and apart from already being priced in, the muted reaction may be a result of Trump suggesting that next week's reciprocal tariffs could be quite lenient," ING analysts said.

The tariff-exposed Mexican peso MXN= weakened 0.2%, with a likely 50-basis-point interest rate cut also expected by the Bank of Mexico later in the day.

South Africa's rand ZAR= appreciated 0.2% against the dollar ahead of a local producer prices reading, while weakness in mining stocks pushed local stocks .JTOPI down 0.1%.

Ukraine's international bonds were marginally lower following steep losses in the previous session when a U.S.-brokered truce between Kyiv and Moscow on energy strikes appeared to falter.

Namibia's newly chosen finance minister Ericah Shafudah will present the country's 2025 budget later in the day.

Despite Thursday's weakness, EM stocks are headed for their best monthly showing since September, benefitting from weakness in the dollar, prospects of increased fiscal spending in Europe, and a broad recovery in Indian and Chinese shares.

HIGHLIGHTS:

** Hungary's government raises 2025 inflation forecast to 4.5%

** IMF says 'urgent reforms' needed to address Senegal's debt woes

** Lebanon bondholders pick Houlihan Lokey as financial advisors

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For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB