June 1 (Reuters) – The Turkish lira extended losses on Wednesday after factory activity contracted for a third straight month in May, while emerging market stocks started June lower as Chinese shares remained under pressure on concerns over a economic slowdown.

The lira TRY= fell 0.2% against the dollar, after losing 9.5% in May, as a survey showed Turkey’s Purchasing Managers’ Index (PMI) for manufacturing stood at 49.2 in May as output and orders slowed amid muted demand and ongoing price pressures. Read full story

In central Europe, data showed Poland’s manufacturing sector contracted for the first time in almost two years in May as supply-side delays, high inflation and market instability linked to the war in Ukraine led to a sharp drop in output and orders. The Polish zloty EURPLN= edged 0.1% lower. Read full story

“The PMI print from Poland this morning isn’t necessarily instructive that the central bank will have to end or change its hawkish stance on inflation and it’s not necessarily suggestive that the Polish economy is in a sharp contraction,” said Simon Harvey, head of FX analysis at Monex Europe.

“We’re looking at a kind of a breakout in the CEE region from macro policy perspective. We’re not seeing the whole region moving in tandem and we are looking at zloty as the golden child.”

The Hungarian forint EURHUF= was flat after a fall in its May PMI offset first-quarter growth figures that showed the economy grew by an annual 8.2%, the same as the preliminary figure. Read full storyRead full story

Emerging market stocks .MSCIEF fell 0.8%, with the Shanghai Composite Index .SSEC and the Hang Seng Index .HSI down 0.1% and 0.6%, respectively, as excitement faded about Shanghai coming out of its two-month lockdown amid lingering concerns over the economy. .SS

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Data showing factory activity in Asia slowed in May, as China’s COVID-19 curbs continued to disrupt supply chains and dampen demand, also weighed on the region, along with a firm U.S. dollar and rising Treasury yields. Read full storyEMRG/FRX

The Russian rouble RUBUTSTN=MCX was flat in Moscow trade, lacking momentum but retaining support from capital controls. The dollar-denominated RTS stock index .IRTS and the rouble-based MOEX .IMOEX rose 1% each after the central bank lifted a ban on short selling of securities. RU/RUB

Russian manufacturing activity also expanded in May after three months of contraction and price pressures eased notably, but sanctions continued to dent client demand, a survey showed. Read full story

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

For TOP NEWS across emerging markets Read full story

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(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shailesh Kuber)