Emerging market stocks extend losses

Emerging market stocks extended losses Dec. 3 after the Federal Reserve chief reinforced the case for an interest rate hike.

MSCI's broadest emerging market index slipped 0.4 percent in its second straight day in the red as bourses in Asia, South Africa, Russia and the Middle East all chalked up losses, reports Reuters

Currencies painted a more mixed picture. Fed chair Janet Yellen said she was "looking forward" to raising rates, but European Central Bank chief Mario Draghi appeared set to announce more stimulus measures later on Thursday. The ECB is expected to deliver a mix of measures that could include a deposit rate cut and changes to its asset-buying program.

An ECB move could be beneficial for central and eastern European assets. Poland's zloty extended the previous day's gain to rise 0.2 percent against the euro.

Meanwhile, Turkey's lira and South Africa's rand rose 0.2 percent against the dollar to extend previous gains.

The rouble fell 0.6 percent against the dollar to trade at its weakest level since mid-September as President Vladimir Putin warned that Russia should prepare for the possibility of prolonged low commodity prices and sanctions.