By Sujata Rao
LONDON, March 1 (Reuters) - A rising dollar inflicted modest losses on emerging stocks and currencies on Wednesday, though buoyant manufacturing data across the developing world allowed many equity markets, from India to Hungary, to buck the weaker trend.
MSCI's emerging equity index opened weaker on disappointment that U.S. President Donald Trump on Tuesday failed to detail how he would implement spending and tax reform pledges, in a speech to the U.S. Congress.
The index fell 0.2 percent to two-week lows for its fourth straight day in the red, and some currencies weakened as rate hike comments by senior Federal Reserve officials sent the dollar and U.S. yields higher.
The losses were, however, offset by strong manufacturing data across the developing world, with China posting its seventh straight monthly expansion in January, according to purchasing managers' indexes (PMIs).
That lifted mainland and Hong Kong shares around 0.2 percent , although analysts reckon the blistering expansion may prompt authorities to raise interest rates in March for the third time in as many months.
South Korea reported its best export growth in five years, indicating continued global demand improvement.
"In a synchronised global recovery driven by manufacturing, emerging markets are looking pretty positive," said Luca Paolini, chief strategist at Pictet Asset Management.
"Manufacturing is outperforming services and for EM that is always a good sign, industrial metals have also been rising and that is also a leading indictor of activity."
The PMI data also showed brisker factory activity in India, a steadier performance in Turkey and a record high reading in Hungary.
Indian shares rose 0.8 percent, heartened also by Tuesday data showing the economy continuing to expand around 7 percent while Hungarian stocks jumped 1.6 percent for their biggest one-day gain since early October.
Hungarian shares also may benefit from the central bank's pledge to loosen policy further if merited.
Turkish shares rose 1.5 percent after its PMI reading rose to just below the 50 mark denoting expansion.
While currencies got off to a weak start in Asia, those in emerging Europe firmed slightly after a shaky start, with the lira rising as much half a percent.
The Polish zloty firmed 0.2 percent to the euro
For GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see) Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg