Stocks rebound on China boost, FX muted ahead of US CPI

Reuters

Stocks rebound on China boost, FX muted ahead of US CPI

2024 10월 10 일, 오전 9:13 GMT

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Updated at 0830 GMT

Hungary's inflation drops to lowest since 2021, Czech CPI jumps

Poland's 2023 GDP growth revised to +0.1% y/y from 0.2%

Stocks up 0.7%, FX off 0.1%

By Shubham Batra

Oct 10 (Reuters) -Emerging market stocks rebounded on Thursday following two days of declines, buoyed by Chinese stocks after the country's central bank kicked off a swap plan, while currencies were muted ahead of a key U.S. inflation print.

MSCI's gauge for emerging market equities .MSCIEF jumped 0.7% by 0830 GMT. The index was set to record its best day in more than a week.

More than half of the top ten constituents on the regional equities index were trading in the green.

The People's Bank of China said it would start accepting applications for its 500-billion-yuan ($70.62 billion) swap facility from financial institutions, to aid the capital market.

The blue-chip CSI 300 Index .CSI300 and the Shanghai Composite Index .SSEC both closed above 1% each.

China's finance ministry will detail plans on fiscal stimulus to boost the economy at a highly-expected news conference on Saturday, signalling more forceful policies to revive growth.

All eyes will be on the U.S. consumer price index data at 1230 GMT, which is expected to show that headline inflation moderated to 0.1% in September on a monthly basis, while rising 2.3% year-on-year.

Money markets currently see an 80% chance of 25 basis points rate cut by the U.S. Federal Reserve in November and a similar-sized cut in December. FEDWATCH

MSCI's regional currencies index .MIEM00000CUS slipped 0.1% ahead of the data.

The Turkish lira TRY= traded at 34.2124 against the dollar. Turkey's unemployment rate fell marginally to 8.5% in August, while its industrial production fell by 1.6% month-on-month in August on a seasonal and calendar-adjusted basis.

Meanwhile, the South African rand ZAR= was 0.3% higher against the greenback ahead of local mining and manufacturing data.

In central and eastern Europe, the Hungarian forint EURHUF= slipped against the euro as the country's headline inflation continued to fall in September and came in a touch below analyst expectations.

On the flip side, Czech consumer prices jumped more than expected, sending mixed signals for near-term interest rate cuts in the region and pushing the Czech crown EURCZK= 0.2% higher against the euro.

The polish zloty EURPLN= was flat as Poland's 2023 GDP growth was revised to 0.1% on a yearly basis versus earlier estimates of 0.2%.

According to a report from Tellimer Research, EM sovereign bond issuances in the first three quarters of this year brought cumulative issuance for the year so far to $137 billion, 47% higher than in the same period last year.

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 Shubham Batra in Bengaluru; Editing by Varun H K

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