By Karin Strohecker
LONDON, Oct 8 (Reuters) - Emerging stocks slipped off 1-1/2 month highs and currencies weakened on Thursday as investors booked profits off a six-day rally while German data cast a pall on central European markets.
Investors were reluctant to extend a recent bounce in emerging assets despite commodity gains, as they waited for the minutes of the U.S. Federal Reserve's September meeting at which it opted not to hike rates given cooling global growth.
MSCI's emerging market index fell 0.5 percent with bourses across Asia as well as South Africa, Turkey and eastern Europe chalking up losses. Chinese mainland shares however jumped 3 percent, catching up with the market rally after a week-long holiday.
Most currencies weakened even though the dollar fell against developed market currencies. Russia's rouble stumbled 1 percent against the greenback despite stronger oil prices.
South Africa's rand and Turkey's lira both slipped following four straight days of gains.
"The last couple of days there was a broad-based EM FX rally which floated all boats, and ... there was a rally in the oil market which supported the rouble," said Tatiana Orlova, senior economist for Russia, CIS and Israel at RBS.
While Brent crude oil had clawed back most of the previous day's losses, it stayed below $52 per barrel.
"(The rally) seems to be stabilising, which is why the rouble is also losing momentum," Orlova added.
Currencies and stocks across central and eastern Europe weakened after Germany posted disappointing economic data for the second day in a row. Its exports showed the biggest monthly decline since the financial crisis while imports also plunged.
This could be ominous for central Europe which has performed well compared to other emerging markets because of trade links to Germany rather than China. Barclays analysts noted Volkswagen's problems could prove a setback for the region where the auto industry generates 3-7 percent of gross domestic product (GDP).
"Our analysis shows a reduction in output, 20 percent in the worst case, may result in a visible economic impact, possibly not limited to the automotive industry," Barclays said, noting the car industry employs employs 6-7 percent of Czech, Polish and Hungarian workers.
Czech, Polish and Romanian stocks fell around half a percent though losses were more muted in Hungary.
The forint slipped 0.3 percent against the euro after data showed Hungarian inflation falling more than expected . Many reckon that could induce the central bank to loosen monetary policy even though it has halted a rate cutting cycle.