By Karin Strohecker
LONDON, June 19 (Reuters) - Emerging stocks enjoyed their biggest daily gains in nearly four weeks on Monday though weaker oil prices took a toll on many markets, with Russia's rouble down half a percent.
MSCI's emerging equity benchmark .MSCIEF rose 0.7 percent lifted by healthy gains in heavyweights Taiwan .TWII and Hong Kong .HIS which jumped around 1 percent, with stocks in mainland China .CSI300 .SSEC matching those gains thanks to signs of tight liquidity conditions easing. currencies failed to take advantage of a tepid dollar .DXY after weaker-than-forecast data on U.S. housing and consumer sentiment on Friday cast doubt on the health of the world's top economy. This led the greenback to reverse gains made in the wake of the Federal Reserve's rate hike.
The crude price fall prompted a decision by Moscow policy makers on Friday to trim the key interest rate by 25 basis points to 9.00 percent - less than some of analysts had expected. the decision, central bank governor Elvira Nabiullina said annual inflation had neared its long-awaited goal of 4 percent as inflationary expectations of households had fallen to an all-time low in May.
"What was interesting about that meeting, more than the decision itself, was the rhetoric," said Cristian Maggio, head of emerging markets strategy at TD Securities.
"The Central Bank of Russia came across more hawkish than what the market had expected."
The market was in the process of repricing, Maggio said. Before the meeting the expectation was 300 basis points worth of cuts over the year.
Currencies across central Europe weakened against the dollar, with the Polish zloty EURPLN= and the Hungarian forint EURHUF= easing 0.2 percent.
Romania's leu EURRON= hovered near a more than four-year low. The currency was hit by political upheavals last week. The ruing leftists have filed a no-confidence motion in parliament against Prime Minister Sorin Grindeanu. the Middle East, Qatari stocks fell 1 percent, hurt by oil and a 2 percent tumble in its biggest petrochemical firm Industries Qatar .QSI IQCD.QA For GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5
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
Net Chg % Chg % Chg
Morgan Stanley (NYSE: MS )
Emrg Mkt Indx .MSCIEF 1010.35
+7.23 +0.72 +17.17
+9.92 +1.00 +8.58
2332.03 +27.53 +1.19 +19.72
35918.39 +405.92 +1.14 +12.23
8430.33 -37.34 -0.44 +18.99
+7.00 +0.87 +26.33
+2.71 +0.27 -13.47
.JTOPI 44925.34 +413.19 +0.93 +2.33
.XU100 98994.29 +801.73 +0.82 +26.69
3145.02 +21.85 +0.70 +1.33
.BSESN 31288.59 +232.19 +0.75 +17.51
close currency currency
% change % change
South Africa ZAR=
17.90 -0.34 +15.31
Index Strip Spd Chg %Rtn Index
Sov'gn Debt 11EML EMBIG 324
.02 7 90.48 1
All data taken from Reuters at 08:58 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
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