EMERGING MARKETS-Stocks Sag On Soft China Data Eye Third Month Of...

China factory activity unexpectedly shrinks in Oct

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Czech economic growth weakens in Q3

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Polish flash CPI at 6.5% y/y in Oct

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Russian rouble soars to 3-month high past 92 vs dollar

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Equities down 0.6%, FX flat

By Johann M Cherian

Oct 31 (Reuters) - Risk sentiment took a dive on Tuesday, with stocks hovering near 11-month lows after data showed China manufacturing activity stumbled in October, while currencies traded tepidly ahead of a U.S. interest rate decision later in the week.

MSCI's gauge for emerging markets equities slid 0.6%, pressured by heavyweight China and Hong Kong stocks, which closed down 0.3% and 1.7% respectively.

China's manufacturing activity (PMI) unexpectedly contracted in October, underlining the task facing policymakers in the world's second-largest economy as they try to revitalise economic growth amid multiple challenges at home and abroad.

"Large firms continued to improve but at a slower pace. Activities in the medium and smaller firms, however, remained in contraction territory," Brandon Yu Sheng Tan, FX and EM analyst at Commerzbank, wrote in a note.

"The PMI components suggest that the growth momentum in production faltered. Demand was weaker and new export orders remained on the back foot."

Emerging markets equities are on course for a 3.9% fall in October, công ty xây dựng kiến tường a third straight month of declines, with indexes in China, Taiwan, South Korea, India, Turkey and South Africa among the top losers.

Meanwhile a basket of emerging market currencies was muted at 0903 GMT and was set for a flat end to the month.

The Israeli shekel however, was set for a 5.3% loss, its worst monthly performance since February, as the country's strife with Hamas sparked a selloff.

Worries about U.S. monetary policy staying restrictive for longer, uncertainties about China's economic recovery and geopolitical jitters have dominated investor sentiment in October.

During Tuesday's session, the Czech crown slipped 0.1% against the euro after preliminary data showed the Czech economy shrank by a greater than expected 0.6% on an annual basis in the third quarter.

Later in the week the local central bank is expected to face a close vote on whether to start cutting interest rates from more than two-decade highs then or in December, a poll showed.

Poland's zloty strengthened 0.1% after flash data showed consumer inflation in September was softer than expected at 6.5% on an annual basis.

Russia's rouble shot up to a three-month high past 92 to the dollar, extending its march following Friday's surprise interest rate hike.

Venezuelan markets will be in focus later in the day as the country's Supreme Justice Tribunal suspended the results of this month's opposition presidential primary, causing Washington to threatened to roll back sanctions relief on its oil sector. (Reporting by Johann M Cherian in Bengaluru; Editing by Jan Harvey)