EMERGING MARKETS-EM assets tread water as CPI, tariff deadline and US–Russia talks loom

By Pranav Kashyap

Aug 11 (Reuters) - Emerging market assets hovered in a tight range on Monday as investors hunkered down ahead of a heavy week packed with U.S. inflation data, a China tariff deadline and Trump–Putin negotiations over Ukraine.

Stocks in Romania, which borders Ukraine, edged up .BETI 0.3%, while Kyiv's international dollar bonds inched lower.

Traders' focus stayed on the U.S.–Russia talks, scheduled for August 15 in Alaska.

"There are a number of risks that suggest any deal resulting from direct Trump-Putin talks alone will be fragile," Hasnain Malik, head of equity research at Tellimer, said.

Currencies in central and emerging Europe were largely steady as investors avoided big bets ahead of Tuesday's U.S. inflation print, seen as pivotal for the Federal Reserve's rate‑cut path, which serves as a linchpin for global monetary policy.

A hotter‑than‑expected reading could upend bets on a September cut. Traders currently seeing about a 90% chance of that happening, according to CME's Fedwatch tool.

In Asia, China's blue-chip index .CSI300 rose 0.4% and the Shanghai Composite index .SSEC rose 0.3%

July consumer inflation ticked higher, even as producer prices kept sliding - a sign that China's vast factory sector is still exporting deflation.

Markets also eyed a U.S. tariff deadline on China set to lapse on Tuesday, with both sides racing to clinch a deal and stave off triple‑digit levies. Market participants are broadly expect another deadline extension.

Washington last week imposed 10%–50% tariffs on imports from dozens of countries and added 40% duties on goods deemed illegally rerouted.

In South Africa, the rand ZAR= inched up while equities were flat .JTOPI ahead of local manufacturing data, while traders watched tariff talks that could determine the rate on South African exports to the U.S.

Elsewhere, Turkey's lira TRY= slipped 0.2% against the dollar, while stocks in Istanbul .XU100 rose 0.6%. Fresh data showed industrial production rose 0.7% in June on a month-on-month basis.

Equities in the Philippines .PSI dropped 1.3%, despite the country's central bank signalling it may deliver the first of two remaining interest rate cuts this year at its August policy meeting. The peso PHP= slipped 0.4%.

Egypt's annual urban consumer price inflation dropped to 13.9% in July from 14.9% in June, data showed on Sunday.

HIGHLIGHTS:

** Chile inflation overshoots forecasts, raising doubts about rate-cut path

** Colombia 12-month inflation 4.90% in July

** South Korea, Vietnam leaders pledge deeper ties amid trade challenges

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For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB