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CEE MARKETS-Corporate earnings hopes lift markets; Czech bonds ease

* Budapest and Warsaw pick up on corporate results expectations * Hungary Oct PMIs jump in contrast with Czech and Polish numbers * Romanian central bank not seen under pressure to raise rates (Recasts, adds PKO, Romanian bond auction, quotes and Czech bonds) By Sandor Peto and Alicja Ptak BUDAPEST/WARSAW, Nov 5 (Reuters) - Expectations for some strong quarterly earnings reports helped to boost the Budapest and Warsaw stock markets on Monday, along with hopes that tensions are easing in the U.S.-China trade war.

Budapest stocks touched a six-month high and were up 1.6 percent at 1441 GMT, boosted by a more than 3 percent rise in the shares of drug maker Richter and an almost 2 percent gain by OTP, Central Europe's biggest independent lender.

Expectations that they will release good earnings reports on Wednesday and Friday respectively boosted their shares above their 200-day moving averages.

Polish lender PKO, meanwhile, is expected to report a 15 percent rise in third-quarter net profit early on Tuesday. Its shares were up 2.5 percent to lead a 1.5 percent rise in Warsaw's blue-chip index to a four-week high.

"The surge is also a result of improved sentiment in the equity market, especially in emerging economies, that are exceptionally sensitive to the situation in China," said Slawomir Kozlarek, trader at Santander brokerage.

October Purchasing Managers' Index (PMI) figures reported in Poland on Friday and in Hungary on Monday showed divergence in economic activity.

Hungary's data showed a sharp pick-up to 57.3 from 54.1 in September, but Polish numbers showed activity was close to stalling.

The slowdown did not weigh on Polish assets as the figures were not in line with alternative business surveys, analysts said.

The zloty firmed 0.3 percent, close to 4.30 against the euro but still short off Friday's peak.

The forint, trading at 322.05, retreated from a three-month high set at 321 on Friday, when Hungarian domestic markets were closed for a public holiday.

Central banks in Bucharest and Warsaw are expected to keep interest rates on hold at their meetings on Tuesday and Wednesday respectively, with U.S. mid-term elections and a Federal Reserve meeting this week posing risks to global markets.

Poland's economic slowdown and a Romanian government plan to freeze public sector wages provide arguments for not tightening policy, analysts said.

Government bonds in the region mostly tracked falling Bund yields. Romania sold more than expected April 2025 Treasury bonds at auction, with the average yield falling to 4.66 percent from 4.82 percent in a sale two weeks ago.

The Czech 10-year bond yield, however, was bid higher by 3 basis points to 2.14 percent.

The crown traded flat at 25.82 against the euro, near levels before the Czech central bank delivered its fourth straight interest rate increase on Wednesday.

Concerns that the Czech government budget is too loose could weigh on the currency, Commerzbank analysts said in a note.

CEE SNAPSHOT AT MARKETS 1541 CET CURRENCI ES Latest Previous Daily Change bid close change in 2018 Czech Hungary Polish Romanian Croatian Serbian Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2018 Prague 1072.35 1067.730 +0.43% -0.54% 0 Budapest 37763.14 37155.21 +1.64% -4.10% Warsaw 2230.30 2197.68 +1.48% -9.38% Bucharest 8582.52 8563.37 +0.22% +10.69% Ljubljana <.SBITOP 800.72 803.66 -0.37% -0.70% > Zagreb 1773.20 1769.80 +0.19% -3.78% Belgrade <.BELEX1 740.93 742.68 -0.24% -2.48% 5> Sofia 594.70 596.80 -0.35% -12.21% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 5-year 10-year Poland 2-year 5-year 10-year FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.05 2.20 2.35 1.96 (PRIBOR= ) Hungary 0.34 0.60 0.96 0.16 Poland 1.76 1.80 1.87 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Additional reporting by Luiza Ilie in Bucharest Editing by Gareth Jones and David Goodman)