Reuters logo
REFILE-EMERGING MARKETS-Tech tumble pushes emerging stocks lower
December 5, 2017 / 10:25 AM / 10 days ago

REFILE-EMERGING MARKETS-Tech tumble pushes emerging stocks lower

 (Refiles story to include link to graphic)
    * Graphic on emerging market tech stocks: reut.rs/2A6ixp8

    By Claire Milhench
    LONDON, Dec 5 (Reuters) - A selloff in technology shares hit
emerging equities on Tuesday despite robust Chinese services
data, though Turkish stock markets rose for the second day and
the lira neared a one-month high to the dollar at one point. 
    Global investors are rotating out of tech shares and into
financial stocks, which may benefit more from U.S. corporate tax
cuts and a potentially lighter regulatory touch for banks.
                         
    MSCI's emerging market tech index fell 1.2 percent
                to a five-week low, tracking the U.S. tech
sector lower          . 
    Amongst fallers, Hong Kong        lost 1 percent, with
Tencent           dropping more than 3 percent, whilst
semiconductor specialist Taiwan         fell 0.8 percent. That
took MSCI's emerging equity benchmark down 0.4 percent
         .          
    Chinese blue chips           bucked the trend, gaining 0.5
percent after Caixin services sector data showed activity at
three-month highs in November.             
    Turkish assets continued to firm, after weeks of selling
caused by rising inflation and tensions between the United
States and Turkey over the trial of a Turkish bank executive.
             
    Turkish bank stocks          jumped 1.6 percent to two-week
highs, the stock market gained around 1 percent and the lira
       firmed 0.2 percent for its fifth straight day of gains
versus the dollar after President Tayyip Erdogan said he was not
requesting a limit on capital flows.             
    The currency later eased to trade flat versus the greenback.
    Erdogan was clarifying comments he had made on Sunday after
Anadolu news agency said prosecutors were set to seize the
assets of Turkish-Iranian gold trader Reza Zarrab, who is
cooperating with U.S. prosecutors in the trial.             
    Commerzbank analysts said his latest remarks may have routed
speculators and triggered a "stop-loss cascade", noting bonds
had also made powerful recoveries, despite bad news on
inflation.
    Turkey's central bank has set an inflation target of 5
percent for 2018-2020, just a day after data showed inflation at
a 14-year high of 12.98 percent.                          
    The average yield spread of Turkish sovereign bonds over
Treasuries narrowed by 2 basis points (bps) to 305 bps, a
one-month low.   
    The rand          weakened 0.2 percent and South African
shares tumbled 1.3 percent          after private sector
activity data confirmed the economy's sluggish state.
             
    The rand has firmed to near two-month highs in recent days
on hopes that Deputy President Cyril Ramaphosa, seen as more
business-friendly than rival Nkosazana Dlamini-Zuma, will become
the next leader of the ruling ANC party.             
    But JPMorgan analysts warned against complacency. 
    "Markets have increasingly adopted expectations of a Cyril
Ramaphosa win since mid-November, yet recent updates from the
branch nominations process point to at most a narrow advantage
or — perhaps more likely — no outright win for either the
modernist or the traditionalist camp," they told clients.
    Elsewhere, Saudi Arabia's non-oil private sector growth hit
two-year highs, indicating the bulk of the economy continued to
operate as normal during an anti-corruption purge.             
    But Saudi stocks         slipped 0.5 percent, ending a
nine-day winning streak, after former Yemeni president Ali
Abdullah Saleh was killed.             
    The Polish zloty           firmed a touch against the euro
before the central bank meets, when it is expected to keep rates
at a record low of 1.5 percent but may warn on rising inflation.
              
            
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             1117.36    -4.59   -0.41  +29.58     
       
 Czech Rep                 1063.75    -3.60   -0.34  +15.42     
       
 Poland                    2418.21   +14.06   +0.58  +24.14     
       
 Hungary                  37524.72  -280.65   -0.74  +17.25     
       
 Romania                   7790.10    +7.64   +0.10   +9.95     
       
 Greece                     736.82    -5.02   -0.68  +14.48     
       
 Russia                    1130.17    -3.70   -0.33   -1.92     
       
 South Africa             52378.66  -697.92   -1.31  +19.31     
       
 Turkey                   05932.61  +717.74   +0.68  +35.57     
       
 China                     3303.04    -6.58   -0.20   +6.42     
       
 India                    32822.57   -47.15   -0.14  +23.27     
       
            
 Currencies              Latest    Prev    Local    Local       
      
                                   close   currency currency    
       
                                           % change % change    
       
                                                    in 2017     
      
 Czech Rep                25.59     25.59   +0.00    +5.55      
     
 Poland                    4.20      4.21   +0.14    +4.86      
     
 Hungary                 313.65    313.63   -0.01    -1.54      
     
 Romania                   4.63      4.63   +0.00    -2.03      
     
 Serbia                  119.45    119.41   -0.03    +3.26      
     
 Russia                   58.60     58.80   +0.33    +4.54      
     
 Kazakhstan              333.01    332.81   -0.06    +0.19      
     
 Ukraine                  27.10     27.22   +0.44    -0.37      
     
 South Africa             13.53     13.51   -0.21    +1.46      
     
 Kenya                   102.90    103.10   +0.19    -0.52      
     
 Israel                    3.49      3.49   -0.15   +10.32      
     
 Turkey                    3.87      3.87   +0.09    -8.85      
     
 China                     6.61      6.62   +0.08    +4.99      
     
 India                    64.45     64.37   -0.12    +5.42      
     
 Brazil                    3.24      3.24   +0.00    +0.28      
     
 Mexico                   18.62     18.60   -0.11   +11.23      
     
            
 Debt                 Index   Strip Spd  Chg   %Rtn   Index     
       
 Sov'gn Debt          EMBIG   314        -1    .05  8 03.85 1   
        
            
 All data taken from Reuters at 09:36 GMT.            
 Currency percent change calculated from the daily U.S.         
  
 close at 2130 GMT.            

    
 (Reporting by Claire Milhench; Graphic by Sujata Rao; Editing
by Susan Fenton)
  

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