UPDATE 1-Emerging market stocks weakest since July 2020, bonds at COVID lows

(Adds details on bond prices, charts)

By Marc Jones

LONDON, May 9 (Reuters) - MSCI's main emerging market stocks index fell to its lowest level since July 2020 on Monday as the pressures of rising global interest rates, a slowdown of China's economy, the Ukraine conflict and a strong dollar all took their toll.

The index, which currently includes shares from 24 developing world countries, dropped 1.2% on the day to just under 1,019 points. That took its fall this year to 17% and left it down almost 30% from a record high hit last February.

An equivalent index of emerging market currencies against the U.S. dollar hit its lowest since November 2020, as India's rupee set a record low and sluggish trade data saw China's yuan close at its weakest since October that year.

"Fed hikes, that's not good for EM (emerging markets), China slowing down, that's not good for EM and now you have a war," Sailesh Lad, head of active emerging markets fixed income at AXA Investment Managers, said.

"I don't want to be too negative, but it is quite easy to paint a negative picture for EM right now."

EM bond markets continued to see selling as well. Analysts at JPMorgan said the EM dollar-denominated debt index that it runs, known as the EMBIGD, is now down more than 16% year-to-date.

The average price of a bond on that index is now below the lows registered in the early stages of the pandemic in 2020. Countries with "high yield" or "junk" credit ratings also now face paying over 10% to borrow in the international capital markets.

"The external and fundamental backdrop has become increasingly difficult for EM sovereigns (governments)," JPMorgan analysts said, adding that emerging economies were now "at the mercy of rates".

(Reporting by Marc Jones; Editing by Saikat Chatterjee and Shounak Dasgupta)