Reuters logo
EMERGING MARKETS-Emerging equities, currencies firm; Turkish stocks slip off 2-yr high
February 6, 2017 / 10:31 AM / in 9 months

EMERGING MARKETS-Emerging equities, currencies firm; Turkish stocks slip off 2-yr high

LONDON, Feb 6 (Reuters) - Emerging equities rose to five-month highs on Monday after solid Chinese services sector data and disappointing U.S. wage growth that raised hopes the U.S. Federal Reserve would not hike rates as quickly as previously feared.

MSCI’s benchmark emerging equity index rose 0.7 percent to its highest level since early-September after China’s services sector showed an increase in orders and companies hiring staff at the fastest pace in 20 months.

Emerging currencies broadly firmed, with many Asian currencies at multi-month highs versus the subdued dollar and even the beaten-down Turkish lira rising 0.3 percent

Sentiment was also supported by Friday’s U.S. non-farm payrolls which showed a greater-than-expected rise in jobs growth, although wage growth was disappointing. This suggested inflation would not reach a rate that would prompt the U.S. central bank to raise interest rates soon.

“That provided a shot in the arm for EM risk appetite,” said Per Hammarlund, chief emerging markets strategist at SEB. “If the FOMC won’t hike as fast as previously thought, that’s good for higher-yielding emerging markets.”

He added that the Chinese data had boosted commodity prices, another supportive factor for emerging markets.

Asian markets set the trend with mainland Chinese shares up 0.5 percent, Hong Kong stocks up 0.9 percent and Taiwan shares climbing 0.9 percent to their highest level since June 2015.

Indian shares also climbed to a four-month high as investors bet the central bank would ease interest rates on Wednesday.

Turkish stocks however retreated 0.5 percent after initially hitting two-year highs, dragged down by Halkbank and Turkish Airlines, which fell 1 percent and 0.4 percent respectively after the government removed them from a privatisation programme.

It transferred its stakes in several firms to its sovereign wealth fund.

Bucharest stocks also rose 0.6 percent to their highest level since August 2015 and Romania’s leu firmed 0.2 percent against the euro after Romania’s government, under pressure from mass protests, annulled a decree that would have decriminalised some graft offences.

The leu hit a seven-month low last week. Romania’s central bank will meet on Tuesday and is expected to keep rates on hold at 1.75 percent.

On bond markets, Nigeria’s pending $1 billion Eurobond sale, its first in 3-1/2 years hangs in balance after President Muhammadu Buhari asked parliament to extend his medical leave, deepening suspicions that his health is worse than thought.

Buhari’s extended leave could further erode confidence in his administration, already under pressure from investors to let Nigeria’s currency float freely to try to revive an oil-driven economy now is at its weakest in 25 years.

For GRAPHIC on emerging market FX performance 2016, see tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2016, see tmsnrt.rs/2dZbdP5

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see )

Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg

on year

Morgan Stanley Emrg Mkt Indx 925.81 +6.94 +0.76 +7.37

Czech Rep 946.00 +2.01 +0.21 +2.65

Poland 2091.73 +15.61 +0.75 +7.38

Hungary 32706.73 -199.16 -0.61 +2.20

Romania 7534.64 +41.88 +0.56 +6.35

Greece 621.75 -7.17 -1.14 -3.40

Russia 1185.87 -4.53 -0.38 +2.91

South Africa 45575.58 +158.01 +0.35 +3.81

Turkey 88155.65 -233.85 -0.26 +12.82

China 3157.37 +17.20 +0.55 +1.73

India 28440.68 +200.16 +0.71 +6.81

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2017

Czech Rep 27.02 27.01 -0.03 -0.04

Poland 4.29 4.30 +0.33 +2.73

Hungary 309.17 309.47 +0.10 -0.11

Romania 4.51 4.52 +0.22 +0.53

Serbia 123.85 123.88 +0.02 -0.40

Russia 58.83 59.02 +0.32 +4.14

Kazakhstan 322.00 323.60 +0.50 +3.62

Ukraine 27.25 27.15 -0.37 -0.92

South Africa 13.27 13.27 -0.04 +3.46

Kenya 103.65 103.80 +0.14 -1.23

Israel 3.75 3.75 -0.09 +2.63

Turkey 3.68 3.70 +0.36 -4.25

China 6.86 6.87 +0.07 +1.21

India 67.18 67.18 -0.00 +1.14

Brazil 3.12 3.12 +0.00 +4.36

Mexico 20.34 20.38 +0.19 +1.86

Debt Index Strip Spd Chg %Rtn Index

Sov‘gn Debt EMBIG 340 3 .04 7 55.29 1

Editing by Susan Thomas

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below