EMERGING MARKETS-Emerging stocks hit lowest since May 2017, lira firms

  • Reuters
  • Stock Market News
EMERGING MARKETS-Emerging stocks hit lowest since May 2017, lira firms
Credit: © Reuters.

By Claire Milhench

LONDON, Sept 12 (Reuters) - MSCI's benchmark emerging equities index .MSCIEF extended losses on Wednesday, hitting its lowest since May 2017 as trade tensions troubled Asian bourses, while Turkey's lira firmed ahead of an expected rate rise on Thursday.

China has told the World Trade Organization (WTO) that it wants to impose $7 billion a year in sanctions on the United States in retaliation for Washington's non-compliance with a ruling in a dispute over U.S. dumping duties. U.S. President Donald Trump said that the United States was taking a tough stance with China. are many external factors which weigh negatively on the psychology of investors - trade wars for example, which is not just pitching one country versus another, but conflicts are now widespread, with many countries involved and affected," said Cristian Maggio, head of emerging markets strategy at TD Securities.

Bank of England Governor Mark Carney also warned that China's financial system posed one of the bigger risks to global financial stability. bourses took the brunt of the selling, with the Asia ex-Japan .MIAPJ0000PUS index having fallen for 10 straight sessions, its longest losing streak since September 2000.

Chinese mainland shares .SSEC closed at their lowest level since January 2016, down 0.3 percent, with the blue-chip index down .CSI300 0.7 percent, its weakest close since August 2016.

China's yuan CNY= hit its lowest level against the dollar in 2-1/2 weeks after an official guidance rate was fixed at its weakest since Aug. 24. rupee plumbed another record low INR= before firming 0.4 percent, with inflation seen slipping below the central bank's medium-term target in August. Korea's won KRW= also slipped 0.4 percent as unemployment hit an eight-year high in August. the Turkish lira TRY= firmed 0.4 percent ahead of Thursday's central bank meeting. The bank signalled it would take action after inflation surged to 17.9 percent in August, its highest in nearly a decade and a half. central bank can't afford not to hike as this would trigger another steep sell off in the currency," Maggio said, adding that over the longer term, the risk was the bank would continue to fall behind the curve.

Turkish stocks .XU100 rose 0.9 percent, with the banking sector .XBANK up 0.4 percent.

Elsewhere in emerging Europe, Russia's rouble RUB= fell 0.2 percent to around 69.5 per dollar, while Moscow shares .IMOEX gained 0.4 percent.

Earlier this week the rouble touched 70.60 per dollar, its weakest since mid-March 2016, on the threat of more U.S. sanctions against Moscow.

Trump could sign an executive order as soon as Wednesday slapping sanctions on any foreign companies or people who interfere in U.S. elections. Czech crown EURCZK= firmed 0.35 percent against the euro to its strongest since mid-May after the central bank governor signalled the bank could increase interest rates as soon as this month. Argentina kept its interest rate at 60 percent as expected, with the peso ARS= taking another hit, slipping 1.5 percent. GRAPHIC on emerging market FX performance 2018, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2018, see http://tmsnrt.rs/2dZbdP5

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 ) Emerging Markets Prices from Reuters

Equities

Latest

Net Chg % Chg % Chg

on year

Morgan Stanley (NYSE: MS )

Emrg Mkt Indx .MSCIEF 1002.58

-0.75 -0.07 -13.46

Czech Rep

.PX

1090.23

+8.79 +0.81 +1.12

Poland

.WIG20

2255.82

+7.47 +0.33 -8.35

Hungary

.BUX

36450.78 +78.84 +0.22 -7.43

Romania

.BETI

8270.44 -11.67 -0.14 +6.66

Greece

.ATG

699.87

+7.83 +1.13 -12.77

Russia

.IRTS

1063.59

+7.69 +0.73 -7.87

South Africa

.JTOPI 50091.36 +49.27 +0.10 -4.65

Turkey

.XU100 93256.68 +867.57 +0.94 -19.14

China

.SSEC

2656.11

-8.69 -0.33 -19.69

India

.BSESN 37625.61 +212.48 +0.57 +10.48

Currencies

Latest

Prev

Local

Local

close currency currency

% change % change

in 2018

Czech Rep

EURCZK=

25.55

25.64 +0.35

-0.09

Poland

EURPLN=

4.31

4.30 -0.13

-3.07

Hungary

EURHUF= 324.69

324.44 -0.08

-4.36

Romania

EURRON=

4.63

4.63 -0.11

+0.93

Serbia

EURRSD= 118.34

118.32 -0.02

+0.05

Russia

RUB=

69.47

69.38 -0.13 -17.00

Kazakhstan

KZT=

377.67

380.57 +0.77 -11.88

Ukraine

UAH=

28.01

28.08 +0.25

+0.48

South Africa ZAR=

15.03

15.05 +0.13 -17.76

Kenya

KES=

100.70

100.65 -0.05

+2.38

Israel

ILS=

3.59

3.58 -0.25

-3.05

Turkey

TRY=

6.39

6.42 +0.41 -40.73

China

CNY=

6.87

6.87 +0.05

-5.25

India

INR=

72.35

72.63 +0.39 -11.78

Brazil

BRL=

4.15

4.15 +0.01 -20.23

Mexico

MXN=

19.13

19.18 +0.28

+2.71

Debt

Index Strip Spd Chg %Rtn Index

Sov'gn Debt 11EML EMBIG 403

2

.00 7 60.53 1

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