Corrects to say yields had risen for three straight days in paragraph 11

By Johann M Cherian

Sept 10 (Reuters) -Risk taking across most emerging market economies was subdued on Tuesday, with an index tracking equities and currencies muted following mixed China trade data, while investors also assessed inflation reports out of Hungary and Czech.

MSCI's index tracking stock indexes in major developing markets .MSCIEF hovered near a one-month low as worries of sluggish growth in top economies prevailed. A gauge for currencies .MIEM00000CUS dipped 0.1%.

On the bonds front, brokerage J.P.Morgan raised its rating on emerging markets debt to "overweight", adding that economic growth appears resilient, alongside moderating inflation in most developing economies excluding China.

China stocks .SSEC, .CSI300 closed marginally higher. While exports grew at their fastest pace in more than a year, concerns about underlying economic health loomed after Aug trade data showed imports missed expectations due to weak domestic demand.

In central and eastern Europe, Hungary's forint EURHUF= slipped 0.1% against the euro after a report inflation rate fell more-than-expected in August to a three-and-a-half year low, keeping pressure for further interest rate cuts on the table.

Domestic Economy minister Marton Nagy said the country has "won the fight against inflation", as per a report, adding that maintaining too restrictive monetary policy might harm the economy.

"Lower than expected CPI may fuel market expectations for the (central bank) to trim interest rates further by the end of the year," said Piotr Matys, senior FX Analyst at In Touch Capital Markets.

"However, reports that the Viktor Orban administration may unleash fiscal stimulus at some stage next year could be used by the (central bank) as an argument to refrain from lowering interest rates further."

The forint has weakened over 3% year-to-date, and is underperforming peers as the local central bank aggressively cut borrowing costs earlier in the year.

Czech's crown EURCZK= had a muted reaction to data showing inflation stood at 2.2% in the month before, marginally over expectations of 2%, as per economists polled by Reuters.

In south Asia, yields on dollar-denominated Sri Lankan bonds US85227SAQ93=TE, US85227SAR76=TE, USY8137FAP37=TE, USY8137FAR92=TE showed signs of stabilising after rising for three straight days. Uncertainty about upcoming presidential elections and the outlook on its debt restructuring strategy remained at the fore.

Later in the day, markets will be watching for the monthly oil market report from the Organization of the Petroleum Exporting Countries (OPEC). Prices of crude oil, a key resource for emerging markets, were marginally lower.

Investors will also tune into the final U.S. presidential debate between Democrat Kamala Harris and Republican Donald Trump, and assess their respective views on foreign and economic policy.

Reporting by Johann M Cherian in Bengaluru; Editing by Kim Coghill

For TOP NEWS across emerging markets nTOPEMRG
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB