* EM stocks on longest losing streak in a year

* China stocks slide as stimulus fails to enthuse

* Turkish banks slide on rollback of FX-protected deposits

Aug 21 (Reuters) - Emerging market equities sank to two-month lows on Monday, as the latest stimulus measures from China disappointed investors, while Turkish banks slumped after the central bank rolled back a scheme that protects deposits against falls in the lira.

The MSCI's EM equities index fell 0.4% - its eighth straight day in the red and longest losing streak since April 2022.

Heavyweight stocks of Shanghai and Hong Kong slumped more than 1%, with China's blue-chip index hitting a nine-month low after the country's central bank cut its one-year benchmark lending rate by a smaller-than-expected 10 basis points and kept the five-year rate unchanged.

The yuan weakened by about 0.2% to 7.32 per dollar in offshore trading.

"At the current juncture, deeper rate cuts and RRR cuts could be seen as concrete moves that are necessary to help restore confidence, even though they may not lead to stronger credit and economic growth soon," Commerzbank strategist Ulrich Leuchtmann said in a note.

"Admittedly, rate cuts will lead to larger interest rate differentials vis-a-vis the U.S. and most major economies, posing further downward pressure on the CNY initially. However, should more forceful stimulus be seen as effective in putting a floor to economic growth, the pressure on the CNY could also be alleviated."

Most other Asian stock markets were mixed, though equities in central Europe and South Africa rebounded after losses last week.

Turkish banks fell 3.7%, lagging the country's benchmark index, after the central bank began rolling back a costly scheme that protects lira deposits from FX depreciation, marking another move toward more orthodox policies.

The central bank is widely expected to raise interest rates later this week, its third hike under Governor Hafize Gaye Erkan, who has vowed to continue with "gradual and steady rate hikes". The central bank last week forecast year-end inflation at about 60%, up from 43.8% in July.

Further, investors will keep a close eye on the central bankers gathering at Jackson Hole, Wyoming, later this week, for clues on where U.S. interest rates will settle after a series of aggressive hikes.

EM currencies have come under pressure recently due to surging Treasury yields and a stronger dollar following signs of resilience in the U.S. economy and bets that borrowing costs there could remain elevated for longer.

The Turkish lira slid to a fresh record low of 27.165 per dollar, but most other currencies stabilised.

Focus will also be on a summit of the BRICS group of major emerging economies - Brazil, Russia, India, China and South Africa - in Johannesburg between Aug. 22 and Aug. 24.

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 RUSSIAN market report, see (Reporting by Sruthi Shankar in Bengaluru; editing by Eileen Soreng)