By Ankika Biswas

Sept 27 (Reuters) -An emerging market stocks index eyed its biggest weekly jump in almost four years on Friday, as an improved economic outlook spurred a buying spree in heavy-weight China shares, while the currencies index was set for its longest weekly winning streak since 2015.

The Shanghai Composite index .SSEC climbed nearly 3% on the day, logging its biggest weekly gain of nearly 10% since 2008, while China's blue-chip CSI300 .CSI300 jumped 4.5% and notched its best week since 2014.

The MSCI index for EM stocks rose 1%, climbing for the seventh straight session and defending its two-year high levels. Hong Kong's Hang Seng index .HSI also jumped 3.2%, rising for the fourth straight day.

Investors welcomed China's central bank's plans to cut the amount of cash that banks must hold as reserves by 50 basis points, the second reduction this year aimed at bolstering a faltering economic growth.

"Policy had already succeeded in loosening financial conditions modestly over the past three months, even prior to the latest package of policy measures announced on Tuesday," according to abrdn's Global Macro Research team.

"This (50-bps cut) will provide a welcome boost to disposable income and may help consumer sentiment to recover over time."

The MSCI index for EM currencies rose 0.3%, standing at record-high levels, set to log its ninth straight weekly advance.

China's stimulus cheer was another boost for EM stocks and currencies, which have already been riding high on expectations of a U.S. interest rate cut, only to be met with a larger-than-usual 50-bps reduction by the U.S. Federal Reserve last week.

Indian shares hit fresh record highs, on track for their third consecutive weekly rise, while South Africa's main stock index .JTOPI also hovered around record highs.

Sri Lanka kept interest rates unchanged, as expected, citing domestic and global uncertainties, but said inflation was likely to remain low and the economy was doing much better than initially expected.

Further, the International Monetary Fund said it was already communicating with Sri Lanka's new economic team.

The country's benchmark stock index .CSE was 0.5% higher, and the rupee LKR= strengthened 0.2% against the dollar.

Meanwhile, Senegal's sovereign dollar bonds fell after a government audit revealed larger debt and deficit figures than the previous administration had reported. The 2033 maturity fell 1.8 cents to bid at 85.06 cents on the dollar, while the 2048 issue was down by 1.7 cents, Tradeweb data showed.

Also on investors' watch list for the day were Ghana's interest rate decision and Zambia's 2025 national budget.

HIGHLIGHTS:

** Pakistan wins more financing assurances from China, UAE, Saudi IMF official says

** African countries eye world's first joint 'debt-for-nature' swap

Reporting by Ankika Biswas in Bengaluru; Editing by Ros Russell

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