* Emerging shares fall on renewed bank worries
* Hungary's forint nears record low vs Swiss franc
* Lithuania follows Czech Republic, Montenegro with bond
By Sebastian Tong
LONDON, Sept 7 (Reuters) - Emerging markets fell on Tuesday as renewed fears over Europe's banks sparked a bout of profit-taking and Hungary's forint resumed its slide towards a record low against the Swiss franc after data showed export growth slowing more than expected.
Sovereign debt issuance by emerging economies continued to revive with Lithuania next in line to launch a bond following the Czech Republic and Montenegro.
After rising for four successive sessions, the benchmark emerging equities index <.MSCIEF> had slipped 0.5 percent by 1040 GMT while emerging sovereign debt <11EMJ> widened 5 basis points to trade at 281 bps over U.S. Treasuries.
"We have been having this up and down movement for some time. It's profit-taking, the region is following the euro/dollar ... and the noise out of the EU about banks," said Simon Quijano-Evans, Europe and Middle East economist and strategist at Cheuvreux in Vienna.
Worries about Europe's banks resurfaced after the Wall Street Journal reported that the European Union's (EU) recent stress tests of major banks had underestimated some lenders' holdings of potentially risky government debt. [ID:nSGE68607E]
Earlier, Germany's banking association said the country's 10 biggest banks may need 105 billion euros in additional capital under the Basel III revamp of banking rules. [ID:nLDE6850Q9]
A bigger than anticipated fall in Germany's July manufacturing orders also weighed on sentiment. [ID:nLDE6860DO]
Polish shares <.WIG20> slipped 0.6 percent after rising five consecutive sessions, while Russian shares <.IRTS> fell 1.5 percent, reversing after four days of gains.
Hungarian shares <.BUX> fell 1.4 percent to see their biggest one-day fall in two weeks.
Turkish shares <.XU100> snapped a seven-day winning streak, and the lira eased 0.3 percent against the dollar
The cost of insuring the country's sovereign debt for five years inched higher to 359 bps from 348 bps the previous day, according to CMA DataVision.
HUNGARY IN FOCUS
Emerging currencies were broadly weaker.
Stung by central bank intervention on Monday, Israel's shekel
Poland's zloty waned after touching a four-month high against the euro in the previous session
Hungary's forint remained under pressure, trading a little off its all-time low versus the Swiss franc
Against the euro
Ongoing tensions between the government and central bank over the country's monetary policy also added to investor worries over the country, which has abandoned negotiations with the International Monetary Fund (IMF).
Credit default swaps to insure Hungarian debt for five years rose some 10 bps.
"We expect the currency to remain under pressure given the government's stance on the IMF and fiscal policy," Societe Generale said in a client note.
Meanwhile, Lithuania opened books on a seven-year dollar benchmark bond. [ID:nLDE68616H]
Emerging European peer Montenegro is seeking to raise 200 million euros in its debut Eurobond this week as well. [ID:nLDE6860YO]
A Czech 2 billion-euro bond met with strong investor demand and was priced on Monday. [ID:nLDE6850I7] (Additional reporting by Carolyn Cohn; Editing by Hugh Lawson)