* EM stocks, FX eye quarterly declines

* China stock markets closed for week-long holiday

* S&P to publish Turkey credit rating review

* India misses out on FTSE Russell index inclusion

Sept 29 (Reuters) - Emerging markets shares found their footing on Friday after being pummelled this week by the likelihood of more tightening by the U.S. Federal Reserve, but were set to close out the third quarter with their biggest three-month decline in a year.

MSCI's index of emerging market equities was up 1.0% by 08:51 GMT, but was on track for declines of 3.5% for the July-September period.

Stocks in mainland China, which were closed for a week-long holiday, and Hong Kong's benchmark index have shed 4% and nearly 6% this quarter, respectively.

Bourses in Johannesburg and Warsaw were also eyeing quarterly declines. On the other hand, Indian stocks were up 2.6%, while Turkish equities surged 44% in the last three months.

Emerging market assets were also on track for weekly declines as U.S. Treasury yields rose following hawkish signals from the Fed. A jump in oil prices and growing troubles in China's indebted property sector further hurt risk sentiment this week.

Debt funds saw outflows of $1.1 billion this week, while outflows in equity funds rose to $3 billion from $838 million last week, according to calculations by JP Morgan.

"The prospects of 'higher for longer' interest rates in the US accompanied by market concerns about the beleaguered Chinese property market do not bode well for demand for EM assets in the coming weeks and months," said Piotr Matys, senior FX analyst at In Touch Capital Markets.

Investors are now looking out for data on U.S. inflation later in the day for further cues on the Fed's rate path.

Regional currencies rose 0.3% and were on track for 0.4% losses this quarter.

Retreating U.S. government bond yields provided some support, with the South African rand firming 1.0% against the dollar.

India's rupee edged 0.1% higher, even after global index provider FTSE Russell said it would not yet include the country in an government bond index.

The Turkish lira was slightly weaker at 27.43 to the dollar ahead of a credit ratings review by S&P.

The Polish zloty was flat versus the euro after a preliminary reading showed the domestic consumer prices index stood at 8.2% year-on-year in September, down from August but below market forecasts of 8.5%.

For GRAPHIC on emerging market FX performance in 2023, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2023, see https://tmsnrt.rs/2OusNdX

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(Reporting by Amruta Khandekar and Johann M Cherian in Bengaluru; Editing by Rashmi Aich)