EMERGING MARKETS-Asian shares suffer Apple effect; Fed, oil cap emerging market losses

  • Reuters
  • Stock Market News
EMERGING MARKETS-Asian shares suffer Apple effect; Fed, oil cap emerging market losses
Credit: © Reuters.

(Repeats to additional product codes, no changes to text)
By Sujata Rao
LONDON, April 27 (Reuters) - Asian tech stocks led emerging
equity losses on Wednesday, battered by a Wall Street selloff
and signs of economic weakness, though firmer oil and
expectations of a dovish U.S. Fed kept a lid on losses
elsewhere.
MSCI's emerging equity index was flat .MSCIEF after some
of its biggest components - China, Taiwan and South Korea -
closed in the red, with Hong Kong down 0.4 percent .HSI and
the latter two ending 0.2 percent lower .TWII .KS11 .
Losses rippled across Apple's supply chain after the iPhone
maker posted its first revenue drop in 13 years and falling
sales in China, while signalling a weak second quarter outlook
AAPL.O
Taiwan's electronics sub-index .TELI lost half a percent
while Taiwan Semiconductor Manufacturing Co 2330.TW , the
world's top chip maker, shed one percent as did Hai Precision
2317.TW , which assembles iPhones.
The companies are also likely to come under pressure from
sluggish growth from home and a slowing U.S. recovery, with
Taiwan's economy seen contracting 0.6 percent in the first
quarter when data is released later this week
However, activity across most other markets was subdued
before central bank meetings in Japan and the United States,
with investors waiting to see if the U.S. Federal Reserve
signals the timing of its next interest rate rise.
Luis Costa, Citi's head of CEEMEA currency and debt
strategy, warned there were worries about the sustainability of
the commodity price bounce which has been led by an expansion in
Chinese money supply and debt.
"We are heading towards another Yellen evening and I'd be
surprised if something more hawkish came from her speech," he
said.
"Given we are in an environment where G3 central banks are
putting dovish pressure on markets, our position is for positive
EM risk."
Oil prices rose 2 percent but effects were muted with Riyadh
the only Gulf bourse to benefit. The index rose half a percent
.TASI led by 1.5 percent gains on Saudi Basic Industries
2010.SE .
Russia's rouble-denominated equity index and the rouble were
flat on the day .MCX RUB= .
Costa said the market remained wary of pushing the rouble
higher, given its 30 percent rally in the past three months and
before Friday's central bank meeting. The meeting should leave
rates unchanged but could signal easing in coming months.
The Hungarian forint slipped a quarter percent to the euro
after Tuesday's expected 15 basis-point (bps) rate cut, trading
just off two-week lows EURHUF= . Hungarian short-dated bond
yields hit new record lows after the cut.
The zloty resumed its fall, losing 0.4 percent to the euro
on fears Poland's plans for Swiss franc mortgage conversions
will lead to ratings downgrades EURPLN= .
Earlier, Malaysian shares hit two-month lows .KLSE as the
crisis around state fund 1MBD continued. But default fears have
been contained as Abu Dhabi-backed IPIC is paying a missed
coupon on a bond that it guarantees
The Brazilian real was marginally firmer before a central
bank meeting that should hold rates steady BRL= . The currency
is approaching recent eight-month highs on expectation a
possible new government will unveil sweeping reforms
GRAPHIC on emerging market FX performance 2016, see http://link.reuters.com/jus35t
For GRAPHIC on MSCI emerging index performance 2016, see http://link.reuters.com/weh36s
For GRAPHIC on MSCI emerging Europe performance 2016, see http://link.reuters.com/jun28s
For GRAPHIC on MSCI frontier index performance 2016, see http://link.reuters.com/zyh97s
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB )
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg

on year

Morgan Stanley (NYSE: MS )
Emrg Mkt Indx .MSCIEF 842.54 -0.09 -0.01 +6.09

Czech Rep .PX 913.35 -1.54 -0.17 -4.49

Poland .WIG20 1914.89 -1.46 -0.08 +3.00

Hungary .BUX 26969.02 +107.90 +0.40 +12.74

Romania .BETI 6577.55 -2.11 -0.03 -6.09

Greece .ATG 576.80 -22.79 -3.80 -8.64

Russia .IRTS 939.48 +8.29 +0.89 +24.10

South Africa /.JTOPI 46695.33 +112.60 +0.24 +1.96

Turkey .XU100 86004.06 +247.64 +0.29 +19.90

China .SSEC 2954.01 -10.69 -0.36 -16.53

India .BSESN 26018.34 +11.04 +0.04 -0.38


Currencies Latest Prev Local Local

close currency currency

% change % change

in 2016

Czech Rep EURCZK= 27.03 27.00 -0.10 -0.12

Poland EURPLN= 4.39 4.37 -0.40 -3.05

Hungary EURHUF= 311.97 311.05 -0.29 +0.86

Romania EURRON= 4.46 4.47 +0.19 +1.35

Serbia EURRSD= 122.63 122.69 +0.05 -0.95

Russia RUB= 65.13 65.22 +0.14 +12.01

Kazakhstan KZT= 330.99 333.27 +0.69 +2.87

Ukraine UAH= 25.20 25.15 -0.20 -4.95

South Africa ZAR= 14.40 14.40 +0.01 +7.40

Kenya KES= 101.10 101.10 -0.00 +1.09

Israel ILS= 3.77 3.76 -0.28 +3.22

Turkey TRY= 2.82 2.82 +0.02 +3.46

China CNY= 6.49 6.49 -0.04 -0.01

India INR= 66.45 66.39 -0.08 -0.38

Brazil BRL= 3.52 3.53 +0.13 +12.34

Mexico MXN= 17.38 17.37 -0.07 -1.20


Debt Index Strip Spd Chg %Rtn Index

Sov'gn Debt 11EML EMBIG 409 1 .05 7 13.51 1


All data taken from Reuters.

Currency percent change calculated from the daily U.S.

close at 2130 GMT.

(Editing by Ed Osmond)

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