* MSCI EM index breaks five-day rally

* China stocks end higher, cap fall in EM index

* Indian rupee down 0.9 pct after RBI cuts rates

* S.African rand weaker as government mulls more Eskom support

By Susan Mathew

April 4 (Reuters) – Emerging market shares retreated from near eight month highs on Thursday, and developing market currencies mostly weakened against a soft dollar as markets await more concrete evidence of progress in U.S.-China trade talks.

MSCI’s index of emerging market shares fell 0.2 percent, breaking a five-day winning streak that was supported by receding fears of a global economic slowdown and positive news from trade negotiations between the world’s two largest economies.

But, the absence of any new headlines on the trade front