Stocks, FX muted after volatile week; China policy in focus
Updated at 0937 GMT
Turkey's c.bank vows tight policy on inflation; stocks surge
Romania interest rate decision due later in the day
Polish c.bank publishes inflation forecasts
MSCI EM stocks index flat, FX up 0.1%
By Johann M Cherian
Nov 8 (Reuters) -Most emerging market currencies and stocks were flat on Friday, a tepid end to a turbulent week following U.S. president-elect Donald Trump's win, while investors were left unimpressed after policy announcements by China's top legislative body.
MSCI's index tracking bourses in developing markets .MSCIEF gave up early gains and was flat, while currencies .MIEM00000CUS inched up 0.1%.
Meanwhile, China's yuan CNH= dipped 0.3% after the country's National People's Congress kicked off a fresh round of fiscal support that eases debt repayment strains for local governments.
Domestic equities .CSI300, .SSEC closed marginally lower and U.S.-listed shares of Chinese companies such as Alibaba BABA.N, Li Auto LI.O and NetEase NTES.O dropped between 3% and 4%.
"That is not what the market was looking for. Given that Trump has become the President there are concerns that he would increase tariffs on Chinese exports to the U.S which would mean that China would need domestic (consumption) stimulus even more," said Ruchir Desai, fund manager at Asia Frontier Capital.
The MSCI EM stocks index was set for its biggest weekly jump in six weeks, aided largely by Chinese stocks in anticipation that Trump's victory could see a bigger stimulus package out of the top consumer.
Equities in other developing markets also saw advances on expectations that increased surcharges on China exports to the U.S. could see companies shifting operations to other economies, while faster central bank interest rate cuts could also act as economy tailwinds.
Some Asian and African economies that have less trade exposure to the U.S. are also expected to be more insulated to trade tensions.
The MSCI EM currencies index however, was set for marginal weekly declines, as investors awaited further clues on Trump's cabinet picks and if he would follow through with his campaign promises on trade, immigration and security.
Meanwhile, Turkish equities .XU100 surged nearly 2%, with banks .XBANK up 4%. The local central bank said it will maintain its tight policy to ensure disinflation remains on track, after lifting the country's inflation forecast for this year and the next.
In eastern and central Europe, an equities index .MIEM00000PUS was poised for its steepest weekly increase in nearly three months.
Among currencies, Poland's zloty EURPLN= dipped 0.1%. The local central bank said, if the government removes a cap on household energy prices in 2025, inflation is expected to peak in the first quarter and return to the target range in early 2026.
Romania's leu EURRON= was flat ahead of an interest rate decision expected later in the day.
Currencies of countries in geopolitical conflict such as Israel's shekel ILS= and Ukraine's hryvnia UAH= inched up 0.1% and 0.2%, respectively.
Desai anticipates a quicker resolution to those conflicts under a Trump presidency could soften oil prices, ease supply chains and boost the global economy overall.
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 in Bengaluru, Editing by William Maclean
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.
