By Karin Strohecker
LONDON, Oct 7 Emerging stocks and currencies
fell on Friday as fears of a hard Brexit for Britain weighed on
global markets, and investors waited for key U.S. jobs data,
though shares looked likely to show a weekly gain.
MSCI's emerging market benchmark fell 0.3 percent
with bourses across Asia and emerging
Europe racking up solid losses. The index took its lead
from major bourses slipping lower amid concerns that Britain's
divorce from the EU will be messier and costlier for the economy
than expected, which saw sterling plunge to a three decade low.
Closely watched U.S. payroll data out later on Friday added
to frayed nerves, with a Reuters poll predicting an increase of
175,000. Initial jobless benefit claims in the world's largest
economy out on Thursday were unexpectedly strong, indicating the
U.S. labour market was holding firm and supporting the prospect
of a Federal Reserve interest rate hike.
"There's a bit of worry it will come in strong and then the
speculation about a rate hike will intensify," said Per
Hammarlund, chief emerging markets strategist at SEB.
"Investors just want to make sure there won't be any
surprises about the December rate hike - that's pretty much
priced in now, in EM at least - but if you see stronger than
expected growth ... you could be looking at more than two rate
hikes next year and that could put a wet blanket over the
Yet over the week, the emerging stocks benchmark was on
track for a 1.2 percent rise.
With the dollar up 0.2 percent on the day and on
track for a 1.6 percent jump on the week, currencies looked more
sombre. Turkey's lira and South Africa's rand both
weakened around half a percentage point against the greenback,
and both were on track for weekly losses of nearly 2 percent.
Russia's rouble slipped 0.3 percent, though was
poised for a third week of gains shadowing oil prices,
which are firmly back above the $50 per barrel threshold.
Across central and eastern Europe, currencies fared more
mixed. The Hungarian forint strengthened against the
euro for the sixth straight session gaining 0.1 percent and
touching its strongest level in 17 months in early trade.
Poland's zloty weakened 0.2 percent on the day,
but was on track for its fifth straight week of gains.
Foreign currency reserve data from a number of emerging
market economies also painted a mixed picture.
Chinese foreign exchange reserves fell for a third straight
month in September and by slightly more than markets had
expected, suggesting fresh capital outflows from the world's
Yet in South Africa, net and gross reserves both beat
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 914.61 -2.43 -0.26 +15.17
Czech Rep 891.13 +1.75 +0.20 -6.82
Poland 1756.45 -5.45 -0.31 -5.52
Hungary 28401.79 +2.20 +0.01 +18.73
Romania 6933.65 -10.79 -0.16 -1.01
Greece 574.91 +0.69 +0.12 -8.94
Russia 1006.63 +2.38 +0.24 +32.97
South Africa 45280.24 +229.16 +0.51 -1.13
Turkey 77768.51 -126.21 -0.16 +8.42
China 3005.51 +7.03 +0.23 -15.08
India 28057.34 -48.87 -0.17 +7.43
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 27.02 27.00 -0.06 -0.07
Poland 4.28 4.28 -0.17 -0.60
Hungary 303.95 304.17 +0.07 +3.52
Romania 4.49 4.47 -0.39 +0.60
Serbia 123.04 123.14 +0.08 -1.28
Russia 62.29 62.09 -0.32 +17.11
Kazakhstan 330.70 332.70 +0.60 +2.96
Ukraine 25.80 25.87 +0.27 -7.16
South Africa 13.92 13.87 -0.37 +11.06
Kenya 101.25 101.20 -0.05 +0.94
Israel 3.79 3.78 -0.20 +2.56
Turkey 3.06 3.04 -0.56 -4.54
China 6.67 6.67 -0.00 -2.65
India 66.71 66.69 -0.03 -0.77
Brazil 3.23 3.23 +0.09 +22.70
Mexico 19.32 19.23 -0.47 -11.14
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 348 -1 .01 7 70.44 1
All data taken from Reuters at 09:14 GMT. Currency percent
change calculated from the daily U.S. close at 2130 GMT.
For GRAPHIC on emerging market FX performance 2016, see link.reuters.com/jus35t
For GRAPHIC on MSCI emerging index performance 2016, see link.reuters.com/weh36s
For GRAPHIC on MSCI emerging Europe performance 2016, see link.reuters.com/jun28s
For GRAPHIC on MSCI frontier index performance 2016, see link.reuters.com/zyh97s
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see )
(Additional reporting by Claire Milhench; Editing by Andrew