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EMERGING MARKETS-Emerging stocks near 2-yr highs, China data caps gains
May 10, 2017 / 9:09 AM / in 5 months

EMERGING MARKETS-Emerging stocks near 2-yr highs, China data caps gains

    By Sujata Rao
    LONDON, May 10 (Reuters) - Emerging markets benefited from a
dollar retreat, a global share rally and improving domestic
company earnings with the benchmark equity index approaching
two-year highs on Wednesday, though weak Chinese inflation
checked gains.
    The dollar slipped around 0.2 percent against a basket of
currencies        while U.S. yields pulled off one-week highs,
allowing most emerging assets to firm. 
    Asian currencies were flat for the most part, weighed down
by worries over fresh nuclear tests by North Korea, though the
Korean won firmed 0.3 percent after the expected presidential
election win for Moon Jae-in, who has promised to try to defuse
tensions on the peninsula       .             
    "We are seeing good solid growth and on the earnings side,
expectations are better than in developed markets. Those are the
positives which keep us relatively (upbeat) on emerging
markets," said Maarten-Jan Bakkum, an investment strategist at
NN Investment Partners.
    Data showed Chinese factory inflation cooling for a second
straight month on the back of falling iron ore and coal prices,
sending Shanghai stocks to the lowest since mid-October        .
However, Hong Kong-listed shares jumped 0.5 percent, lifted by
gains in media firm Tencent          .
    "What's slightly worrying is the Chinese slowdown but I
don't think that will derail the EM story," Bakkum said.
    South African shares also hit new 11-month highs, though
blue chip Naspers, majority-owned by Tencent, slipped off
Tuesday's record highs                   .
    In eastern Europe, Polish stocks were led down by metals
smelter KGHM         , which had come under pressure after the
Chinese data weighed on copper prices. The index slipped 0.5
percent but is near a two-year high after recent robust bank
earnings. 
    State-run bank Pekao was the latest to post strong earnings,
after Alior           and ING Slaski          .
    On currency markets, the rand, the Turkish lira and rouble
all firmed more than half a percent to the dollar, inching off
multi-month lows                     . The zloty and forint both
rose around 0.3 percent to the euro                    .
    The emerging new debt issuance torrent continued, with
roadshows and deals expected from Ivory Coast and Oman.
            
    JPMorgan noted that sovereign debt issuance had already hit
$76.9 billion, the highest ever at this stage in the year. It
forecast full-year issuance at $140.7 billion, surpassing the
previous $128.8 billion touched in 2016. 
        
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         )
 Emerging Markets Prices from Reuters            
 Equities                  Latest    Net Chg  % Chg  % Chg      
     
                                                     on year    
       
 Morgan Stanley               
 Emrg Mkt Indx              990.46    -0.14   -0.01  +14.87     
       
 Czech Rep                 1011.08    +0.12   +0.01   +9.71     
       
 Poland                    2403.96    -9.57   -0.40  +23.41     
       
 Hungary                  33558.71   +48.72   +0.15   +4.86     
       
 Romania                   8316.99    +1.29   +0.02  +17.39     
       
 Greece                     777.97    -0.40   -0.05  +20.87     
       
 Russia                    1090.72    +5.04   +0.46   -5.35     
       
 South Africa             47601.38   +40.30   +0.08   +8.43     
       
 Turkey                   95341.10   +17.73   +0.02  +22.02     
       
 China                     3051.75   -28.78   -0.93   -1.67     
       
 India                    30175.05  +241.80   +0.81  +13.33     
       
            
 Currencies              Latest    Prev    Local    Local       
      
                                   close   currency currency    
       
                                           % change % change    
       
                                                    in 2017     
      
 Czech Rep                26.68     26.63   -0.19    +1.23      
     
 Poland                    4.22      4.23   +0.30    +4.41      
     
 Hungary                 311.18    311.67   +0.16    -0.76      
     
 Romania                   4.54      4.55   +0.06    -0.21      
     
 Serbia                  123.08    123.11   +0.02    +0.22      
     
 Russia                   58.08     58.39   +0.53    +5.48      
     
 Kazakhstan              318.28    318.41   +0.04    +4.83      
     
 Ukraine                  26.46     26.49   +0.11    +2.04      
     
 South Africa             13.57     13.62   +0.36    +1.18      
     
 Kenya                   103.15    103.10   -0.05    -0.76      
     
 Israel                    3.61      3.60   -0.14    +6.68      
     
 Turkey                    3.61      3.62   +0.41    -2.25      
     
 China                     6.90      6.91   +0.04    +0.58      
     
 India                    64.61     64.67   +0.09    +5.16      
     
 Brazil                    3.19      3.19   -0.01    +1.99      
     
 Mexico                   19.09     19.17   +0.41    +8.53      
     
            
 Debt                 Index   Strip Spd  Chg   %Rtn   Index     
       
 Sov'gn Debt          EMBIG   321         4    .03  7 77.84 1   
        
            
 All data taken from Reuters at 08:43 GMT.            
 Currency percent change calculated from the daily U.S. close at
2130 GMT.            

  

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