Qatari stocks fell 1 percent on Monday as the country debuted in MSCI's mainstream emerging index, though firmer Chinese data and expectations of euro zone policy easing lent support to broader emerging market assets.

Qatar and United Arab Emirates, the two best performers this year in MSCI's frontier index, are now classed as emerging markets with index weightings of 0.53 percent and 0.64 percent respectively - larger than Egypt, Hungary or Peru.

While UAE stocks fell, Qatari losses were bigger due to profit-taking and fears global football body Fifa may reconsider allowing Doha to host the 2022 soccer World Cup.

Both markets have had a spectacular run-up in the past 18 months. Qatar is up 62 percent while Abu Dhabi and Dubai, part of the UAE, have risen 225 percent.

"There is a whole industry developed around anticipating changes in index consituents and it looks like the impact of all the changes has been fully discounted," said John-Paul Smith, head of emerging equity strategy at Deutsche Bank.

Blackrock fund manager Sam Vecht said the two would be at the "foot of the table" of emerging markets.

"Many investors have positioned for the event well ahead of time. This means valuations in some UAE stocks became unusually high, and we became increasingly concerned by the rapid rise in certain share prices," Vecht told clients in a note.

Elsewhere in the region, Egyptian stocks recovered 2 percent after 5 sessions of losses fuelled by a government decision to impose a 10 percent capital gains tax on local investors. The proposals were watered down slightly on Monday.

Nigeria and Kuwait benefit from the Qatar and UAE promotion, now together making up 46 percent of the frontier index. Lagos rose 0.5 percent, after a 3 percent jump on Friday. - Reuters