* India’s rupee rallied to a near two-month high
* China data fuels fears of slowing global growth
* Dollar, euro steady with eyes on Brexit deal
By Agamoni Ghosh
Nov 14 (Reuters) - Plunging oil prices and a weaker dollar lifted most emerging currencies on Wednesday but failed to boost emerging shares weighed down by Chinese growth concerns.
The emerging currency index firmed with the extended oil slide boosting currencies of big energy importers such as India , Turkey, Indonesia and the Philippines. The rupee rallied to a near two-month high.
“Two key things driving FX markets in particular. One is the news yesterday on the potential easing in trade tension between U.S. and China ... and secondly the continued decline in oil prices which benefit net importers such as the Indian rupee,” said Khoon Goh, Head of Asia Research at ANZ.
U.S.-China trade tensions enjoyed a reprieve on Tuesday as negotiations between the world’s two largest economies appeared to be making headway, with a U.S. adviser saying the countries’ two leaders would meet at the G20 meeting later this month.
“So, we are seeing a divergence between FX and equities in Asia where the equity moves are being driven by what is happening in the U.S., while FX is driven by oil prices and ongoing developments in the U.S.-China trade relationships,” added Goh.
Overnight, Wall Street reversed early gains that were driven by trade optimism as energy stocks dragged.
The MSCI index for stocks was lower by 0.4 percent, its fifth-straight session of losses as most Asian indices came under pressure from mainland Chinese equities , which fell about 1 percent each.
Losses in China came after new data underscored concerns about weaker economic growth, and as energy producers slipped on plunging oil prices.
Indices in Hong Kong and South Korea also fell by 0.5 and 0.15 respectively.
The Russian stock index fell 1.2 percent dragged by energy stocks, but, the rouble was slightly firmer supported by upcoming local tax payments which offset the plunge in benchmark oil prices.
Stock in South Africa were trading at their lowest levels since the beginning of the month, down 1.3 percent, while the rand climbed 0.5 percent as investors awaited the release of retail sales figures which are expected to rise by 2.2 percent, as per a Reuters Poll.
The Czech crown hit a 4-month low against the euro after theirs quarter economic growth came in below analysts’ expectation.
Other Eastern European currencies remained little changed against a steady euro.
News that United Kingdom and European Union struck a Brexit divorce deal which, however, may face hurdles getting through the House of Commons, kept the dollar’s European rivals at bay.
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For RUSSIAN market report, see (Reporting by Agamoni Ghosh and Susan Mathew in Bengaluru; Editing by Andrew Heavens)