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
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
