By Daniel Bases

NEW YORK, April 17 (Reuters) - Emerging market assets turned in a mixed performance on Thursday, reflecting the muddled state of core markets that were buffeted by negative U.S. economic data but supported in part by some positive corporate earnings reports.

Dollar-denominated sovereign emerging market bonds fell while credit-default-swaps rose, as did stocks and some currencies against the U.S. dollar.

"The economic data from the U.S. was not great but the market is not getting hit too too badly," said one senior trader at a German Bank in New York.

Regional U.S. manufacturing activity fell to its lowest level since the 2001 recession in April while weekly jobless benefits hit a near four-year high. (For story click on [ID:nN17413930])

"People with short positions are being frustrated, no doubt, forced to buy and cover. That's helping the CDS market today at least but otherwise it's a fragile market," said the trader.

U.S. technology services company International Business Machines (IBM.N: Quote, Profile, Research), a barometer of business spending, reported stronger-than expected earnings on Wednesday and raised its 2008 earnings outlook.

Stronger-than-expected industrial production in Mexico and economic growth Argentina however failed to generate demand for their sovereign bonds while a bigger-than-expected 50 basis point interest rate increase to 11.75 percent in Brazil sucked away some of the buying impetus for their currencies.

Mexico's central bank is expected to hold its interest rates unchanged on Friday at 7.50 percent <MXCBIR=ECI>.