EMERGING MARKETS-FX, stocks steady as markets await cues on new Fed governor, tariffs

By Purvi Agarwal

Aug 6 (Reuters) - Most emerging market currencies were subdued and stock indexes were mixed on Wednesday, as investors awaited further clarity on U.S. President Donald Trump's pick for a Federal Reserve governor and potential tariff decisions ahead of the deadline.

Equities globally took a breather, after gaining in the last two sessions, capitalizing on increased Fed rate cut hopes, with MSCI's EM equity gauge .MSCIEF down 0.3% on the day.

Stocks in Romania .BETI were up 0.4%, while those in Hungary .BUX dipped 0.1%. Turkish stocks .XU100 were 0.3% lower, but in South Africa .JTOPI, they gained 0.6%.

Most Asian equities were subdued, with only Thai stocks .SETI gaining 1.4% to their highest level since late February.

Markets are awaiting Trump's replacement for Fed Governor Adriana Kugler, who resigned over the weekend, with the decision expected at the end of the week.

Trump said the search had been narrowed down to Economic Adviser Kevin Hassett, former Fed governor Kevin Warsh, and two other people, who were not named.

"Warsh stands out as the most USD-friendly candidate at this stage. He is generally considered more hawkish than the others, and we could see the dollar gain support on his nomination," said Francesco Pesole, FX strategist at ING.

The dollar index =USD was stable in the day, after languishing on Friday following a bleak jobs report, which also raised bets on a September rate cut to over 90%, according to CME's FedWatch.

Polish stocks .WIG20 were 0.4% higher. Convenience store chain Zabka ZAB.WA jumped 9.5%, set for its best day on record, after posting a higher core profit in the second quarter.

Poland's currency EURPLN= was flat against the euro. Karol Nawrocki, a conservative historian and supporter of Donald Trump's MAGA movement, will be sworn in as Poland's president on the day.

Most Asian currencies were subdued and so were others in emerging Europe. Turkey's lira TRYTOM=D3 was little changed, while South Africa's rand ZAR= gained 0.2%.

MSCI's index tracking global EM currencies .MIEM00000CUS was flat.

The market's focus is also on any decision on tariffs ahead of the August 7 deadline, with many trading partners still without a bilateral deal with the U.S.

India was the latest, with Trump threatening substantial duties over its purchase of Russian oil. The country is also among the BRICS group members that face some of the highest tariffs, others being South Africa and Brazil.

Any announcement from Russia will also be monitored as Trump's envoy Steve Witkoff arrived in Moscow, two days before the expiry of a sanctions deadline.

HIGHLIGHTS:

** Thailand records another negative inflation reading in July

** India holds rates as expected but flags risks from US tariffs

** Turkey's Simsek says determined to maintain lasting disinflation process

For TOP NEWS across emerging markets nTOPEMRG

For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB