EMERGING MARKETS-EM stocks up at 1-mth high on decent Chinese imports

  • Reuters
  • Stock Market News
EMERGING MARKETS-EM stocks up at 1-mth high on decent Chinese imports
Credit: © Reuters.

By Claire Milhench
LONDON, June 8 (Reuters) - Emerging equities rose to
one-month highs on Wednesday, their fifth straight day of gains,
after better-than-expected Chinese import data boosted commodity
prices and markets continued to price out a June U.S. interest
rate rise.
MSCI's benchmark emerging equities index .MSCIEF was up
around 0.4 percent as the import data pointed to improving
domestic demand in China and cemented views that the economy may
be slowly stabilising.
"It's the stimulus that was initiated late last year - it's
starting to show up in the data, and affect China's trading
partners. The markets are reacting positively to that," said Per
Hammarlund, chief emerging markets strategist at SEB.
The central bank predicted a second straight annual fall in
exports but still said 6.8 percent economic growth this year.

China's May crude oil imports jumped the most in over six
years, iron ore imports were the highest since December and
copper purchases were up more than 19 percent.
This lifted commodity prices, with oil LCOc1 rising to
over $51 a barrel to touch eight-month highs O/R , whilst
copper revived from two-week lows.
This in turn boosted commodity-reliant emerging markets,
with Russian dollar-denominated stocks .IRTS up 0.4 percent to
one-month highs.
The Russian rouble RUB= opened slightly firmer against the
dollar but remains near two-week lows ahead of Friday's central
bank meeting at which some market participants expect the first
rate cut in almost a year.
The yield on the Russian 10-year local bond RU10YT=RR is
approaching two-year lows.
Chinese mainland stocks .CSI300 slipped 0.4 percent amid
weak volumes ahead of a long weekend. But other Asian markets
bounced, with Korea .KS11 , climbing 0.8 percent to close at
its strongest level so far this year, whilst Taiwan .TWII rose
0.4 percent.
The Korean won KRW= also rose to a five-week high against
the dollar, with the government and central bank announcing
plans for a $9.5 billion fund to support two state-run banks
exposed to the country's struggling shipyard sector.

The dollar has fallen to one-month lows as weak U.S. jobs
data on Friday and cautious comments from Fed chair Janet Yellen
hit expectations of a rate rise in June or July.
In emerging Europe, Prague shares .PX tumbled 2.5 percent,
led by a 6.5 percent fall in index heavyweight CEZ CEZP.PR
after the utility stock traded for the first day without a right
to its dividend.
Budapest stocks .BUX inched to eight-year highs, shrugging
off a 15 percent fall in lender FHB Bank FHBK.BU which was
fined by regulators for alleged market manipulation.
The Polish zloty EURPLN= firmed 0.2 percent against the
euro to its strongest level since mid-April. This followed
Tuesday's proposals that the cost to Polish banks of solving
borrowers' Swiss franc mortgage problems should be spread over
30 years or so.
The Polish central bank on Wednesday held rates at a record
low of 1.50 percent, in line with the expectations of analysts
polled by Reuters.
The Hungarian forint EURHUF= was flat near five-week highs
against the euro after posting a better-than-expected trade
surplus in April.
But the Croatian kuna EURHRK= weakened 0.17 percent
against the euro, after the biggest party in the ruling
coalition filed a no-confidence motion against Prime Minister
Tihomir Oreskovic, calling for him to step down.
The South African rand ZAR= weakened 0.1 percent against
the dollar, retreating from Tuesday's one-month highs ahead of
first quarter GDP data which is expected to show that the
economy is continuing to contract.

For 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 838.86 +2.96 +0.35 +5.63

Czech Rep .PX 872.56 -22.64 -2.53 -8.76

Poland .WIG20 1832.71 -0.08 +0.01 -1.42

Hungary .BUX 27451.40 +57.21 +0.21 +14.76

Romania .BETI 6610.20 -18.29 -0.28 -5.63

Greece .ATG 654.70 +1.10 +0.17 +3.70

Russia .IRTS 952.79 +3.92 +0.41 +25.86

South Africa /.JTOPI 47934.12 -119.08 -0.25 +4.67

Turkey .XU100 77946.27 -211.35 -0.27 +8.67

China .SSEC 2926.70 -9.35 -0.32 -17.31

India .BSESN 26996.55 -13.12 -0.05 +3.37

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2016

Czech Rep EURCZK= 27.02 27.01 -0.04 -0.08

Poland EURPLN= 4.34 4.35 +0.24 -1.92

Hungary EURHUF= 310.54 310.29 -0.08 +1.32

Romania EURRON= 4.50 4.50 -0.08 +0.34

Serbia EURRSD= 123.33 123.28 -0.04 -1.51

Russia RUB= 64.52 64.65 +0.20 +13.07

Kazakhstan KZT= 330.60 333.56 +0.90 +2.99

Ukraine UAH= 24.95 24.96 +0.04 -4.00

South Africa ZAR= 14.93 14.90 -0.18 +3.57

Kenya KES= 100.95 101.00 +0.05 +1.24

Israel ILS= 3.83 3.83 -0.04 +1.52

Turkey TRY= 2.89 2.89 +0.01 +0.77

China CNY= 6.57 6.57 +0.01 -1.19

India INR= 66.73 66.65 -0.12 -0.80

Brazil BRL= 3.44 3.44 +0.11 +15.19

Mexico MXN= 18.34 18.36 +0.11 -6.36

Debt Index Strip Spd Chg %Rtn Index

Sov'gn Debt 11EML EMBIG 408 0 .03 7 29.65 1

(Editing by Alison Williams)

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