* Turkish central bank meet at 1100 GMT
* North Korean missiles underpin Kospi weakness
* Rand falls after Moody’s flags Eskom bailout
By Agamoni Ghosh
July 25 (Reuters) - Emerging-market shares rose on Thursday amid optimism over trade, while developing-world currencies tread water ahead of the Turkish central bank meeting, where officials are expected to deliver one of the biggest rate cuts in the country’s history.
A Reuters poll forecast the Turkish central bank would cut a key rate by 250 basis points, and several analysts have priced predicted a cut of as much as 300 bps.
The rate decision is considered pivotal. The central bank has a new governor, Mural Uysal, who was named after President Tayyip Erdogan sacked his predecessor, Murat Cetinkaya. Reuters reported last week that Cetinkaya was fired after he rebuffed requests for a 300-bps cut on June 12.
The rate decision will be announced at 1100 GMT.
“We find it difficult to make a forecast with conviction, given the political pressure on the bank and lack of clarity on how much emphasis the bank will give to the base-effects-driven decline in inflation,” said analysts from Credit Suisse in a note.
Click here to view the interactive graphic tmsnrt.rs/32KbNrP.
The lira was slightly lower and stocks in Istanbul rose 0.2%.
In other developing-world currencies, South Africa’s rand slid 0.4% after the ratings agency Moody’s said a government proposal to prop up the debt-laden utility Eskom was “credit negative”. MSCI’s index for emerging-market stocks rose, led by Chinese and Hong Kong shares, as investors cheered potential progress in Sino-U.S. trade talks. Top U.S. and Chinese negotiators will meet next week for the first time since Presidents Donald Trump and Xi Jinping agreed to revive talks to end their year-long trade war.
Shares in South Korea’s Kospi fell 0.4% after the country’s military said that North Korea fired two short-range missiles early on Thursday.
In emerging Europe, Hungary’s forint and Poland’s Zloty gained before a European Central Bank meeting later in the day. Expectations the ECB will cut interest rates grew after discouraging economic data on Wednesday.
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Reporting by Agamoni Ghosh in Bengaluru, additional reporting by Ezgi Erkoyun, editing by Larry King