EMERGING MARKETS-Thailand assets drop after PM sacked; EM stocks set for longest monthly winning streak since 2017

By Pranav Kashyap

Aug 29 (Reuters) - A gauge tracking emerging market equities was poised to gain for the eighth straight month, while assets in Thailand dropped on Friday after the country's Constitutional Court dismissed Prime Minister Paetongtarn Shinawatra.

Stocks in Bangkok .SETI fell as much as 1.5%. The baht THB=TH slipped 0.3%.

"Our preliminary assessment is that there could be a short-term negative impact on the market sentiment because now it's still quite uncertain how the politicians will choose the new prime minister," said Rakpong Chaisuparakul, senior vice president of investment strategy at KGI Securities.

Meanwhile, Indonesian stocks .JKSE were set to log their steepest intraday loss in over two months, while the rupiah IDR= was on course for its worst day in over four months as escalating political protests in Jakarta rattled investor confidence.

In India, the rupee's INR= slide underscores rising anxiety over fresh U.S. trade levies that threaten to dent growth and the fallout of escalating trade tensions. It is poised for its steepest weekly drop in nearly four months and has breached the 88-per-dollar mark for the first time.

The MSCI gauge for equities in emerging markets .MSCIEF fell 0.19%, but was set to log its eighth monthly gain - the longest winning monthly streak since August 2017.

In central and eastern Europe, Polish stocks .WIG20 were on course to log their first monthly decline this year and could snap their record eight month winning streak.

Polish inflation eased more than forecast in August, although it was somewhat offset by projections for a higher than expected budget deficit in 2026.

The zloty EURPLN= was poised to log its longest weekly losing streak in eight months against the euro.

A gauge tracking the region's equities .MIME00000PUS was also poised to log its first monthly loss this year.

The momentum has largely been driven by developments in the Ukraine war and U.S. President Donald Trump's peace efforts.

"We have been cautious about the possibility of a rapid resolution of the Ukraine-Russia war and its macro implications for CEE economies," Murat Toprak, CEEMEA FX strategist

at HSBC, said.

"That said, we are cognisant that hopes around a ceasefire and peace agreement can occasionally have positive effects."

Elsewhere, Turkey's lira TRY= was on course to log a 15th consecutive month of losses, its longest monthly losing streak since November 2000.

"If U.S. rate cuts are delivered in a predictable manner and preserve a sizeable positive real interest rate buffer, the lira should remain attractive from a carry perspective," Toprak added.

Turkish stocks .XU100, meanwhile, were headed for third-straight month of gains.

Stocks in South Africa .JTOPI were poised to log their longest monthly winning streak in over 13 years, while Chinese equities .CSI300, .SSEC were set to post their biggest monthly jump since September 2024.

Analysts have noted that with the Federal Reserve's independence under scrutiny, the dollar =USD sliding, and labour market data flashing warning signs, investors have diversified their portfolios and emerging markets could potentially be in vogue as investors flee a shaky U.S. outlook.

** Egypt central bank slashes key interest rates by 200 bps

** Russia eyes China trade revival as Putin prepares for Xi summit-sources

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