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EMERGING MARKETS-Emerging stocks set for monthly gain, tech near record high
October 31, 2017 / 10:41 AM / 22 days ago

EMERGING MARKETS-Emerging stocks set for monthly gain, tech near record high

LONDON, Oct 31 (Reuters) - Emerging markets broadly firmed on Tuesday after a scintillating performance from U.S. giant Apple put emerging tech shares on track for a tenth straight month of gains, with South Korean markets surging to record highs.

Most emerging currencies seesawed around flat to the dollar, which has lost some steam on reports that U.S. President Donald Trump is preparing to appoint the dovish Jerome Powell as U.S. Federal Reserve governor.

Focus however remains on the tech sector, after iPhone maker Apple gained 6 percent in the past two days, lifting suppliers and allied sectors across Asia and boosting MSCI’s index of emerging tech stocks towards record highs.

The sector accounts for a quarter of MSCI’s emerging equity index and helped push the benchmark 0.3 percent higher and on track for a monthly gain. It had fallen in September, snapping an eight-month winning streak.

The Seoul bourse benefited from a 2 percent jump in Samsung which announced shareholder-friendly policies and also from an agreement between South Korea and China to repair strained relations. The index is set for its biggest monthly gain since May.

Analysts at Societe Generale saw Asian stocks as a ”bright spot“ in global markets, citing ”the onset of a new earnings cycle, better growth prospects and undemanding valuations.

“After six years of disappointment, consensus earnings estimates for 2017 have been raised 10 percent year-to-date. We see this momentum continuing, with most Asian countries widely forecast to grow above long-term trend earnings growth,” the bank added.

Neil MacKinnon at VTB Capital also noted robust growth data across most of the advanced and developing world. Taiwan’s third quarter growth was the strongest in over 2 years, data on Tuesday showed

“Financial markets, and especially equities, remain encouraged by most of these economic developments, even though the ultra-easy monetary policies of the major central banks have contributed to financial asset price inflation,” MacKinnon said.

France’s economy too grew at the fastest pace since 2011 in the third quarter, data showed, while Russia, in recession for two years is also steadily recovering, with 2.4 percent growth in September.

On currency markets, the Korean won strengthened 0.6 percent to a three-month high against the dollar and the won firmed to two-week highs. But most non-Asian currencies were flat to firmer.

The lira was flat to the dollar after Turkish data showed a 37 percent year-year rise in tourism revenues. This was undermined, however, by an 85 percent widening in the country’s trade deficit.

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) Morgan Stanley Emrg Mkt Indx 1118.05 +2.52 +0.23 +29.66

Czech Rep 1067.17 +3.17 +0.30 +15.79

Poland 2510.57 -6.46 -0.26 +28.88

Hungary 39840.20 -41.02 -0.10 +24.49

Romania 7818.14 -27.37 -0.35 +10.35

Greece 747.74 +4.17 +0.56 +16.17

Russia 1121.84 -2.21 -0.20 -2.65

South Africa 52472.96 -6.22 -0.01 +19.52

Turkey 09384.82 +918.04 +0.85 +39.99

China 3394.50 +4.17 +0.12 +9.37

India 33213.13 -53.03 -0.16 +24.74

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2017

Czech Rep 25.65 25.65 +0.01 +5.29

Poland 4.25 4.25 +0.02 +3.67

Hungary 311.41 310.94 -0.15 -0.83

Romania 4.60 4.60 +0.01 -1.33

Serbia 119.18 119.25 +0.06 +3.50

Russia 58.32 57.97 -0.60 +5.04

Kazakhstan 334.82 333.61 -0.36 -0.35

Ukraine 26.85 26.83 -0.07 +0.56

South Africa 14.11 14.04 -0.46 -2.66

Kenya 103.60 103.70 +0.10 -1.19

Israel 3.52 3.52 +0.03 +9.34

Turkey 3.78 3.78 -0.03 -6.70

China 6.63 6.64 +0.21 +4.72

India 64.74 64.85 +0.18 +4.96

Brazil 3.29 3.29 +0.00 -1.08

Mexico 19.25 19.23 -0.11 +7.61

Reporting by Sujata Rao

Our Standards:The Thomson Reuters Trust Principles.
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