EM stocks recover after bruising selloff, dollar recovery weighs on currencies
Updates at 0910 GMT
EM stocks rise, recouping some of Monday's losses
Lira at record low as dollar recovery weighs
Saudi Aramco rises after results
Bangladesh awaits interim government
By Lisa Pauline Mattackal
Aug 6 (Reuters) -Emerging market assets recouped some losses on Tuesday after a torrent of selling in the prior session, though a stronger dollar and continued concerns over global economic growth kept gains in check.
MSCI's index of emerging market stocks .MSCIEF rose 1.2% after its worst day in over two years on Monday, when a combination of concerns about a U.S. economic recession, disappointing tech earnings and geopolitical worries saw investors flee risk assets.
Emerging market stocks in Asia outside Japan .MIAPJ0000PUS rose 1%, helped by a sharp recovery in the Nikkei .N225.
Still, some caution remained, with investors pricing in an 80% chance of a 50 basis point interest rate cut from the Federal Reserve in September, down from 86% on Monday. Policy easing in the U.S. typically benefits emerging market stocks and currencies.
"Large stock market movements often mean that investors are looking for answers to one or more questions, so even if the day looks like the situation is improving, it is best to assume that it will continue to be nervous for some time to come," Marcus Widén, economist at SEB said.
The Japanese yen was a key beneficiary of risk aversion on Monday, which saw an unwinding of carry trades that hit many high-yielding emerging market currencies. The yen JPY=EBS slipped on Tuesday, though a rebound in the U.S. dollar =USD continued to weigh on EM currencies. .MIEM00000CUS.
"Higher interest rates in Japan and expectations of greater and faster expectations of interest rate cuts in the U.S. changed the conditions for carry trades," Widen added.
Turkey's lira TRYTOM=D3 touched a fresh record low of 33.47 to the dollar, while the South African rand ZAR= slipped 0.2%.
Malaysia's ringgit MYR= lost over 1% against the dollar after surging over 2% on Monday. The Mexican peso MXN= was also down on the day after the carry trade favourite fell to a two-year low.
Among equities, Turkey's Bist 100 .XU100 rose 1.4% and the Prague bourse .PX rose XX% after falling over 4% the session prior.
Saudia Arabia's benchmark index .TASI gained 1.8%, with Saudi Aramco 2222.SE rising 2.2% after reporting a second-quarter net profit of 109.01 billion riyals.
Central European currencies weakened against the euro, with the Czech crown EURCZK, Polish zloty and Hungarian forint EURHUF= slipping between 0.1% and 0.3%.
Meanwhile the International Monetary Fund said it was "fully committed to Bangladesh" after Prime Minister Sheikh Hasina resigned and fled the country following student-led protests.
Kenya's shilling KES= edged down 0.2% against the dollar ahead of a monetary policy announcement.
HIGHLIGHTS:
** NEWSMAKER-Nobel laureate Muhammad Yunus was arch foe of ousted Bangladesh PM Hasina
** Global market rout has more to do with end of cheap funding than US economy
** GRAPHIC-Unwind of 2024's winning trades batters global markets as growth fears spike
For TOP NEWS across emerging markets nTOPEMRG
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
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 Lisa Pauline Mattackal in Bengaluru
Editing by Christina Fincher
Asset collegati
Ultime news
Disclaimer: le entità di XM Group forniscono servizi di sola esecuzione e accesso al nostro servizio di trading online, che permette all'individuo di visualizzare e/o utilizzare i contenuti disponibili sul sito o attraverso di esso; non ha il proposito di modificare o espandere le proprie funzioni, né le modifica o espande. L'accesso e l'utilizzo sono sempre soggetti a: (i) Termini e condizioni; (ii) Avvertenza sui rischi e (iii) Disclaimer completo. Tali contenuti sono perciò forniti a scopo puramente informativo. Nello specifico, ti preghiamo di considerare che i contenuti del nostro servizio di trading online non rappresentano un sollecito né un'offerta ad operare sui mercati finanziari. Il trading su qualsiasi mercato finanziario comporta un notevole livello di rischio per il tuo capitale.
Tutto il materiale pubblicato sul nostro servizio di trading online è unicamente a scopo educativo e informativo, e non contiene (e non dovrebbe essere considerato come contenente) consigli e raccomandazioni di carattere finanziario, di trading o fiscale, né informazioni riguardanti i nostri prezzi di trading, offerte o solleciti riguardanti transazioni che possano coinvolgere strumenti finanziari, oppure promozioni finanziarie da te non richieste.
Tutti i contenuti di terze parti, oltre ai contenuti offerti da XM, siano essi opinioni, news, ricerca, analisi, prezzi, altre informazioni o link a siti di terzi presenti su questo sito, sono forniti "così com'è", e vanno considerati come commenti generali sui mercati; per questo motivo, non possono essere visti come consigli di investimento. Dato che tutti i contenuti sono intesi come ricerche di investimento, devi considerare e accettare che non sono stati preparati né creati seguendo i requisiti normativi pensati per promuovere l'indipendenza delle ricerche di investimento; per questo motivo, questi contenuti devono essere considerati come comunicazioni di marketing in base alle leggi e normative vigenti. Assicurati di avere letto e compreso pienamente la nostra Notifica sulla ricerca di investimento non indipendente e la nostra Informativa sul rischio riguardante le informazioni sopra citate; tali documenti sono consultabili qui.
