July 25, 2019 / 9:58 AM / 4 months ago

EMERGING MARKETS-Shares rise, with spotlight on Turkish rate decision

* Turkish central bank meet at 1100 GMT

* North Korean missiles underpin Kospi weakness

* Rand falls after Moody’s flags Eskom bailout

By Agamoni Ghosh

July 25 (Reuters) - Emerging-market shares rose on Thursday amid optimism over trade, while developing-world currencies tread water ahead of the Turkish central bank meeting, where officials are expected to deliver one of the biggest rate cuts in the country’s history.

A Reuters poll forecast the Turkish central bank would cut a key rate by 250 basis points, and several analysts have priced predicted a cut of as much as 300 bps.

The rate decision is considered pivotal. The central bank has a new governor, Mural Uysal, who was named after President Tayyip Erdogan sacked his predecessor, Murat Cetinkaya. Reuters reported last week that Cetinkaya was fired after he rebuffed requests for a 300-bps cut on June 12.

The rate decision will be announced at 1100 GMT.

“We find it difficult to make a forecast with conviction, given the political pressure on the bank and lack of clarity on how much emphasis the bank will give to the base-effects-driven decline in inflation,” said analysts from Credit Suisse in a note.

Click here to view the interactive graphic tmsnrt.rs/32KbNrP.

The lira was slightly lower and stocks in Istanbul rose 0.2%.

In other developing-world currencies, South Africa’s rand slid 0.4% after the ratings agency Moody’s said a government proposal to prop up the debt-laden utility Eskom was “credit negative”. MSCI’s index for emerging-market stocks rose, led by Chinese and Hong Kong shares, as investors cheered potential progress in Sino-U.S. trade talks. Top U.S. and Chinese negotiators will meet next week for the first time since Presidents Donald Trump and Xi Jinping agreed to revive talks to end their year-long trade war.

Shares in South Korea’s Kospi fell 0.4% after the country’s military said that North Korea fired two short-range missiles early on Thursday.

In emerging Europe, Hungary’s forint and Poland’s Zloty gained before a European Central Bank meeting later in the day. Expectations the ECB will cut interest rates grew after discouraging economic data on Wednesday.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see

Reporting by Agamoni Ghosh in Bengaluru, additional reporting by Ezgi Erkoyun, editing by Larry King

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