Emerging Markets-Russia, Georgia assets extends losses

* Rouble falls further on Russia conflict with Georgia

* Spreads on Georgian Eurobonds widen sharply

* Emerging equities hover above Friday's 1-year lows

* Chinese stocks drop 5.2 pct to 19-month low

By Carolyn Cohn

LONDON, Aug 11 (Reuters) - The rouble and Russian stocks fell and spreads on Georgian Eurobonds widened sharply on Monday as military conflict between Georgia and Russia unnerved investors.

Russian troops and armour pushed into the Georgian separatist regions of South Ossetia and Abkhazia on Monday and Georgian forces shelled the Russian-held capital of South Ossetia in a worsening of the crisis which erupted last week. [nLB596227]

"Both Georgia and Russia have been much less cautious than the market had expected. This has developed in quite an unexpected way," said Lars Christensen, head of emerging markets research at Danske Bank in Copenhagen.