* China stocks gain, yuan bounces off 16-year low

* Turkish July current account deficit at $5.466 bln

* Polish c.banker sees pause in rate cuts in October

* Deadly earthquake hits Morocco

Sept 11 (Reuters) - Emerging market currencies climbed on Monday as the dollar lost steam in the run-up to key U.S. inflation data due later this week, while stocks in the region received a boost from China's fresh stimulus measures to revive investor confidence.

MSCI's index for emerging market currencies rose 0.3% by 0900 GMT, with the dollar weakening ahead of Wednesday's U.S. consumer prices data that will shape expectations for the interest rate trajectory in the world's largest economy.

Recent evidence of resilience in the U.S. economy had spurred concerns of higher-for-longer interest rates, helping the greenback log its eighth consecutive week in the green last week. Risk-sensitive emerging market (EM) currencies took a hit.

"Even though the inflation rate is likely to have turned out slightly higher again due to higher petrol prices, the increase in the core rate should again be in line with the achievement of the inflation target," Commerzbank's FX analyst Esther Reichelt said in a note.

EM stocks advanced 0.2%, bouncing off their lowest level in two weeks hit in the previous session.

Aiding sentiment, Chinese regulators held a meeting with domestic and overseas investors and also reduced the risk weighting attached to insurance companies' holdings of blue-chip shares and tech stocks.

Broader Chinese stocks gained 0.7%, though Hong Kong's Hang Seng Index dropped 0.6% on a drag from technology and property shares.

The yuan rebounded from a 16-year low against the dollar as China's central bank set the midpoint rate around which the yuan is allowed to trade, with the strongest bias on record.

Turkey's lira was flat at 26.87 to the dollar. Data showed the country's current account deficit stood at $5.466 billion in July, more than a Reuters forecast, while industrial production fell 0.4% on a monthly basis.

Global ratings agency Fitch on Friday upgraded Turkey's foreign currency outlook to "stable" following a shift in the country's economic policy.

The Polish zloty was flat against the euro, after a steep decline in the prior week, following a 75-basis-point rate cut from the country's central bank.

Polish central banker Ludwik Kotecki said he expects a pause in rate cuts in October.

Focus was also on the aftermath of Morocco's deadliest earthquake in more than six decades that hit the country late on Friday, with the death toll rising to more than 2,100.

For GRAPHIC on emerging market FX performance in 2023, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2023, see https://tmsnrt.rs/2OusNdX

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For CENTRAL EUROPE market report, see

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For RUSSIAN market report, see (Reporting by Amruta Khandekar; Editing by Janane Venkatraman)