| LONDON, March 10
LONDON, March 10 Emerging stocks and currencies
headed on Friday for a second straight week of losses as
investors showed nerves ahead of next week's all-but-certain
interest rate hike in the United States and a gathering of
global finance chiefs.
Meanwhile in South Korea, stocks ended at a more than
one-week high and the won strengthened against the dollar
on the day after the impeachment of President Park Geun-hye over
a graft scandal involving the country's conglomerates, paving
the way for an election in 60 days.
MSCI's emerging market benchmark was treading
water on the day with gains in South Africa, Turkey
and Russia offsetting losses across Asia
But the index was on track to fall nearly 1 percent since
Monday after a similar fall in the previous week.
Currencies such as Mexico's peso, Russia's rouble
, South Africa's rand and the Turkish lira
strengthened on the day against the dollar which slipped off
one-week highs before the release of key U.S. jobs data.
But all were on track for weekly losses of well over 1
percent versus the greenback.
Analysts polled by Reuters expected a 190,000 rise in U.S.
jobs last month, fewer than January's 227,000, and the data -
barring any negative surprises - is expected to cement
expectations of a rise in U.S. interest rates on March 15.
"The market has a bit of concern about emerging market
performance, there is a worry a Fed hike will hit emerging
market currencies and equities," said Thomas Kwan, CIO and head
of fixed income at Harvest Global Investments.
He expects U.S. policy makers to deliver two to three hikes
this year and added:
"If there is a rate hike because inflation is rising and
growth is not strong that would be a concern. At the moment I
don't think inflation is a problem but growth is relatively
There are some worries also about what message finance
chiefs of the G20 group of nations will deliver after meeting on
March 17-18. This will be their first meeting since Donald
Trump's U.S. election victory in November and his reaffirmation
of an avowedly protectionist 'America First' trade stance.
A draft communique prepared before the gathering showed that
for the first time in more than 10 years a reference to
"excessive global imbalances", had been introduced - an apparent
swipe at German and Chinese trade surpluses.
Central European currencies too were set for weekly losses
against the euro , with the zloty at
three-week lows after a standoff between Brussels and Warsaw
Poland had objected to the reappointment of former Polish
premier Donald Tusk to chair EU summits, but the bloc's other 27
leaders voted in his favour.
"The Polish government is cornering itself a bit there,"
said Jakob Christensen, head of emerging markets research at
Danske Bank. "I expect the zloty to trade a bit weaker, adding
to the negative sentiment after the central bank meeting on
Wednesday, which was a little bit dovish."
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 924.27 +1.33 +0.14 +7.19
Czech Rep 979.94 +5.93 +0.61 +6.33
Poland 2218.80 +29.14 +1.33 +13.91
Hungary 32977.05 -9.81 -0.03 +3.04
Romania 7878.61 +8.34 +0.11 +11.20
Greece 648.57 -0.28 -0.04 +0.77
Russia 1055.84 +8.94 +0.85 -8.37
South Africa 44204.32 +251.17 +0.57 +0.69
Turkey 89653.23 +650.66 +0.73 +14.74
China 3212.43 -4.32 -0.13 +3.51
India 28964.01 +34.88 +0.12 +8.78
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 27.02 27.01 -0.05 -0.04
Poland 4.33 4.32 -0.04 +1.80
Hungary 311.78 311.50 -0.09 -0.95
Romania 4.55 4.55 -0.03 -0.26
Serbia 123.75 123.84 +0.07 -0.32
Russia 59.04 59.20 +0.26 +3.76
Kazakhstan 317.19 316.49 -0.22 +5.19
Ukraine 26.82 26.84 +0.07 +0.67
South Africa 13.27 13.33 +0.44 +3.47
Kenya 102.55 102.50 -0.05 -0.18
Israel 3.68 3.68 +0.10 +4.76
Turkey 3.75 3.77 +0.71 -5.88
China 6.92 6.91 -0.11 +0.38
India 66.64 66.67 +0.05 +1.96
Brazil 3.19 3.19 +0.01 +1.89
Mexico 19.78 19.83 +0.27 +4.74
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 332 0 .03 7 55.62 1
All data taken from Reuters at 09:47 GMT. Currency percent
change calculated from the daily U.S. close at 2130 GMT.
For GRAPHIC on emerging market FX performance 2017, see tmsnrt.rs/2e7eoml
For GRAPHIC on MSCI emerging index performance 2017, see tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see)
(Additional reporting by Sujata Rao and Claire Milhench)