Stocks, FX to end week lower; Sri Lankan bonds rise after elections
Updated at 1021 GMT
Nigeria eyes $2.2 billion debt raising to support reforms
Weaker crown forecasts stoke Czech central bank rate debate
Yuan on course for longest weekly losing streak since 2021
MSCI EM stocks up 0.1, FX index up 0.2%
By Johann M Cherian
Nov 15 (Reuters) -Most emerging markets stocks and currencies inched up on Friday, but were set for weekly falls as investors parsed weak Chinese data, while Sri Lankan bonds trended higher after the president's coalition won a majority in parliamentary elections
MSCI's index tracking equities in developing markets .MSCIEF edged up 0.1%, but was set for its biggest weekly drop since June 2022.
A currencies index .MIEM00000CUS crept up 0.2%, but was set for its steepest weekly decline since January, pressured by the U.S. dollar's =USD recent tear that saw it touch a one-year high. On the day, the greenback was down 0.3%.
Much of the losses among emerging market assets were due to markets pricing in a second Donald Trump presidency with fiscal, trade and immigration policies that, analysts say, could be a drag on most developing economies.
Investors were also unimpressed by China's recent efforts to shore up its economy, along with bleak earnings reports out of India that sent its Nifty 50 index .NSEI 10% lower from its September record highs earlier in the week.
China's yuan CNH=CFXS was set for its seventh straight weekly drop, the longest such losing streak since 2021. Equity markets .SSEC, .CSI300 also closed more than 1.4% lower after data showed factory output growth slowed in October.
Elsewhere in south Asia, Sri Lankan hard currency bonds US85227SAR76=TE, USY8137FAP37=TE, USY8137FAR92=TE got a lift after President Anura Kumara Dissanayake's leftist coalition won a thumping victory in a snap general election.
However, the local the rupee LKR= was flat.
"The general mood towards Sri Lanka was quite optimistic ... President Dissanayake (AKD) has been pragmatic ... retaining key economic officials and expressing his commitment to see through the recent restructuring agreement with bondholders and stay the course with Sri Lanka's IMF programme," said Patrick Curran, senior economist at Tellimer.
Meanwhile, South Africa's rand ZAR= firmed 0.5%, while bonds ZAR2030= were relatively flat as investors braced for a credit rating review by S&P Global later in the day.
In Europe's emerging east, the Czech crown EURCZK= inched up 0.1% against the euro. Minutes from the central bank's policy meeting showed some policymakers viewed a weaker crown as an inflation risk when it left rates unchanged earlier in the month.
Nigeria's naira NGN= appreciated 1.2%. The African nation plans to raise a total of $2.2 billion from offshore debt markets this year.
The region's top oil producer also said it aimed to increase production to about two million barrels per day by year-end, which could support the government's 2025 spending plans.
For GRAPHIC on emerging market FX performance in 2024 http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2024 https://tmsnrt.rs/2OusNdX
Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru. Editing by Mark Potter
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