* MSCI's EM stocks index at near eight-month high
* Turkey's lira down as rising inflation adds to woes
* Polish central bank interest rate meeting awaited
By Susan Mathew
April 3 (Reuters) - Emerging-market stocks rose on Wednesday to their highest in nearly eight months and currencies rallied as reports of progress in U.S.-China trade talks bolstered risk sentiment.
MSCI's index of emerging-market stocks rose 0.9 percent and was on course for a fifth straight day of gains. Its currency index .MIEM00000CUS climbed 0.3 percent, although losses in Turkey's lira TRY= capped gains.
The latest boost to sentiment came after White House economic adviser Larry Kudlow said United States and China expect to make more headway in trade talks this week. MKTS/GLOB
"Signals suggesting that (U.S.-China) trade negotiations are going the right way is something that is playing a role here," said Jakob Christensen, chief analyst and head of EM research at Danske Bank.
Most stock markets across the developing world were higher. Mainland China stocks closed up more than 1 percent and shares in Turkey .XU100 , South Africa .JTOPI and Russia .IMOEX gained 0.8 percent to 0.9 percent.
The currencies of most developing economies gained as the dollar weakened. Most Asian currencies rose and South Africa's rand ZAR= climbed 0.6 percent. Higher oil prices helped the Russian rouble RUB= rise 0.3 percent. FRX/
The rand had rallied after Moody's struck a surprisingly positive note in a credit opinion on Tuesday, but the currency gave up those gains and finished lower on concern over embattled power company Eskom. .J
Turkey's lira TRY= slid 0.4 percent. The currency has seen volatile as tension with the Unites States grew and President Tayyip Erdogan's party lost elections in Istanbul and Anakara.
On Wednesday, data showing Turkey's annual consumer price inflation rose to 19.71 percent in March added to investor concerns. Inflation had reached a 15-year high above 25 percent in October, during a crisis that wiped nearly 30 percent off the lira's value.
"The inflation numbers show that challenge that the Turkish economy has with higher oil prices," Christensen said. "And given Turkey is a large oil importer, it will also worsen balance of trade and demand for dollars, that is of course on top a fairly large debt redemption."
Poland's zloty PLN= rose 0.1 percent against a stronger euro before a central bank meeting. The bank is expected to keep its key interest rate unchanged, with investors watching for comments on the pace of inflation and upcoming fiscal stimulus.
For GRAPHIC on emerging market FX performance 2019, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance 2019, 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
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.