BUCHAREST: Emerging European stocks fell and Poland's zloty led currencies lower on Friday after a massive earthquake hit Japan and unrest in Saudi Arabia knocked demand for riskier assets.
The deputy head of Poland's central bank said on Thursday he did not expect the zloty to strengthen significantly this year, helping to push the unit down 0.8 percent by 1034 GMT and breaching key support at 4.02 per euro.
Romania's stock market fell nearly 2 percent and other major bourses in the region also lost ground.
The region's emerging markets have suffered from the rises in oil prices and investors' aversion for risk prompted by unrest in the Middle East, and markets are eyeing protests in leading oil producer Saudi Arabia nervously.
"Saudi Arabia will be under the spotlight today and markets will be keen to assess the potential for some social disturbances to have a material effect over a political changeover," BNP analysts said in a note.
Hungary's forint was a touch lower at 273.7 per euro and pushed through support at 272.80, the 50-day moving average which lent support earlier in the week.
The currency and Hungarian bond yields were little moved by data showing annual inflation edged up to 4.1 percent in February -- less than forecast -- while fourth-quarter economic growth was revised slightly lower.
"The figures published in the morning had no impact whatsoever. We still expect no change in central bank interest rates," said a Budapest-based fixed income trader.
"If the forint doesn't weaken beyond 275 or firm beyond 272.50, we don't see any particular movement (in the bond market)."
CZECH DATA MIXED
The Czech crown was the region's best performing unit, trading flat at 24.358 per euro after data showed the economy expanded by 0.3 percent in the fourth quarter from the previous three-month period, slower than previously thought.
Dealers and analysts said the data was mixed as industrial output figures showed a pickup. Interest rate swaps fell around 5 basis points after the data, but they mostly tracked euro rates.
"Nevertheless from a trading point of view, the Czech currency should be under pressure from mounting global risks and may test its 55-day moving average (24.42)," KBC said.
Romania's leu fell 0.2 percent. A central banker said its monetary policy stance was adequate at the moment, though inflationary risks are bigger than initially envisaged.
Higher than expected February inflation has prompted some analysts to change interest rate forecasts, saying it will be difficult for the central bank to cut borrowing costs as long as the economy remains weak.
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