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HK shares surge almost 6%; HSBA, Tencent rally

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Hungary's forint slips again, approaches record low

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Polish, Romanian cenbank decisions due later in day

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S.African cenbank says power cuts to hamper growth

Oct 5 (Reuters) - Emerging market shares jumped 2% on Wednesday, thanks to a surge in Hong Kong stocks, while currencies were muted as the dollar attempted to claw back some losses.

Hong Kong shares jumped 5.9%, with HSBC shares rallying 5.7% after the bank said it was considering selling its business in Canada, worth billions of dollars.

Internet and tech heavyweights such as Tencent, Alibaba and Meituan jumped between 5.6% and 8.2%.

Elsewhere, Turkish shares rose 0.5%, extending gains to a fourth session. The benchmark index has rallied more than 10% since Friday.

Most other bourses in emerging Europe, the Middle East and Africa lost ground. Optimism from a strong overnight close on Wall Street appeared to have faded as Western European bourses and U.S. stock futures fell.

MSCI's index of EM shares had rallied 2% on Tuesday as well, after weak U.S. manufacturing data spurred bets that the Federal Reserve could be forced to tone down its aggressive tightening stance. Eyes will now be on Friday's U.S. labour market report.

But keeping investors nervous, San Fransisco Fed President Mary Daly called for more hikes and sustained restrictive policies till inflation comes down to the Fed's 2% target.

"We remain sceptical that the Fed is about to pivot on the back of slightly softer U.S. data this week," ING strategists said.

As major central banks tighten policies aggressively to curb inflation, recession fears have emerged, sapping risk appetite. The EM stocks index has declined more than 25% so far this year, while its currencies counterpart is down 7.7%.

Hungary's forint dropped 0.6%, approaching its all-time low as the Russia-Ukraine war hampers gas flows, raising worries about energy supply and surging costs.

Hungary's central bank will offer 1 trillion forints ($2.38 billion) worth of new short-term discount bills in a tender on Thursday, as it aims to drain forint liquidity from the market in line with an announcement made last month.

Romania's leu and Poland's zloty made small moves against the euro ahead of central bank decisions later in the day.

Romania's interest rate was seen rising by 50 basis points to 6%, while Poland is expected to raise by 25 basis points to 7.00% amid rising inflation.

In Poland, the market is still tilted to the hawkish side as inflation is yet to peak, ING said. But as the central bank tries to end the hiking cycle, Wednesday's meeting will be negative for the zloty, they said.

South Africa's rand lost 0.6% against the dollar after rallying nearly 3% over the last two sessions.

The country's central bank on Tuesday said it estimated scheduled power cuts implemented by struggling utility Eskom would shave about 1.0 percentage point from 2022 economic growth. For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX

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For RUSSIAN market report, see (Reporting by Susan Mathew in Bengaluru; Editing by Subhranshu Sahu)