* Stocks, currencies up ahead of Greece rescue detail
* Debt spreads flat, credit default swaps fall
By Gordana Filipovic
LONDON, Feb 11 (Reuters) - Emerging stocks extended gains on Thursday to near one-week highs while most high-yield currencies firmed, with markets holding on to opening levels as European Union leaders unveiled support for debt-ridden Greece.
EU politicians gave Greece strong verbal support, saying the country would not be left alone, but EU finance ministers will need more time to work out the detail of a plan, bound to be linked with more belt-tightening in Greece. [ID:nLDE61A0W2]
Risk appetite has improved despite concern over debt crisis
in indebted euro zone nations, while expected EU backing for
Greece has led currencies up, including the South African rand
"The deal will initially soothe emerging market assets that had become unsettled by the Greek saga," BNP strategist Elisabeth Gruie said.
"However, the underlying malaise is unlikely to dissipate soon and following a relief rally, we would expect consolidation to set in with some investors having still large exposure to local markets and could be wishing to take profit," she said adding that focus will be on global equities markets.
MSCI emerging equities <.MSCIEF> extended gains for the third consecutive day, moving up by 1.0 percent to 921.62 points -- a one week high -- led by Asian markets.
Asian shares got a boost from data showing a surge in employment in Australia and stronger-than-expected bank lending in China in January.
In Europe, Turkey led gains with its banking shares boosting the main stock market index <.XU100>.
Emerging currencies firmed against the euro on improved investor sentiment, but analysts said the impact of any Greek deal on emerging markets remained unclear.
"Initially, markets may have a knee jerk reaction which should favour trades like rand, zloty and leu but given the structural nature of the problems, attention will continue to focus on other weak fiscal sovereigns," RBS' Ahmed said.
"So far we have not seen significant contagion in the emerging market world but if problems persist, it will draw attention back to the fiscal weakness in places like Hungary and Latvia."
Emerging debt spreads were flat, with yields over U.S. Treasuries at 304 bps on JPMorgan's EMBI Plus index <11EMJ> but the Greek crisis continues to weigh on emerging market debt issuance. Market sources said a Eurobond from Bahrain's United Gulf Bank was the latest to be postponed.
"Undoubtedly the Greek crisis hit appetite for emerging market corporate bonds...Investors are finding it hard to concentrate on emerging, when the Western sovereign issues are the 600 pound gorilla in the room," Jason Manolopoulos, fund manager at Dromeus Capital said.
Five-year credit default swaps fell across emerging markets, with Hungary dropping to 251 bps from a 261 bps close on Wednesday. Turkey's 5-year CDS prices eased to 195 bps from 204 and Markit's iTraxx Sovx CEEMEA index, which started trading last month, was at 245-245 bps from 254 on Wednesday.
Debt insurance costs, however, rose slightly for Ukraine, where Prime Minister Yulia Tymoshenko is still refusing to concede defeat in a presidential election. [nLDE61A0V1] (Additional reporting by Sujata Rao and Carolyn Cohn; Editing by Toby Chopra)