EMERGING MARKETS-EMEA stocks buoyant, Russia's rouble leads FX losses

  • Reuters
  • Stock Market News
EMERGING MARKETS-EMEA stocks buoyant, Russia's rouble leads FX losses
Credit: © Reuters.

* Rouble down 0.7%

* Russian stocks lead EMEA gains

* Hungarian forint flat, stocks lose on weak industrial data

By Ambar Warrick

Oct 6 (Reuters) - Developing market currencies in EMEA retreated on Tuesday, while stocks rose, tracking their Asian peers, amid some optimism after U.S. President Donald Trump left a hospital where he was being treated for COVID-19.

A strong overnight session on Wall Street also whetted appetite for equities, with markets anticipating progress in a new U.S. stimulus bill. .N

The MSCI's index of emerging market stocks .MSCIEF rose 0.6% to a more than two-week high, with most support coming from major Asian markets.

But gains were limited, as a surge in global coronavirus cases raised concern over a fresh round of lockdown measures.

"Encouraging news is likely to continue supporting equities and the broader market sentiment. However, we are still reluctant to call for a long-lasting recovery ... Coronavirus infections continue to rise at a fast pace," Charalambos Pissouros, senior market analyst at JFD Group, wrote in a note.

The Russian rouble RUB= led losses in EMEA, as spiking coronavirus cases in the country offset a potential boost to the currency from higher oil prices. risks, including the prospect of more sanctions against Moscow, have plagued the rouble in recent weeks: turmoil in neighbouring Belarus, the suspected poisoning of Kremlin critic Alexei Navalny and a military conflict in the South Caucasus.

The pressure on the currency has prompted central bank intervention to support the exchange rate, a move that could help the currency going into October. stocks .IMOEX .IRTS led gains among their EMEA peers, as oil and gas firms benefited from better crude prices. O/R

South Africa's rand ZAR= fell about 0.4% after it cut short a five-day winning streak on Monday. Stocks in the country .JTOPI rose slightly.

The Hungarian forint EURHUF= was flat after data showed the country's industrial output fell by an annual 2.1% in August. stocks .BUX fell 0.3%. Energy group MOL MOLB.BU dropped 1.8% after about 200 workers were infected with the coronavirus at one of its plants. For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX

For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB

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