LONDON Feb 10 Forecast-beating Chinese trade
data and impending U.S. tax cuts from President Donald Trump
lifted emerging stocks to a new five-month high on Friday while
currencies were set to finish the week on a strong note.
MSCI's emerging market index rose 0.3 percent,
with stocks having added 1 percent this week in their third
straight week of gains, after numbers from China showed a strong
pick-up in demand at home and abroad, marking a healthy start to
2017 for the world's largest trading nation.
A White House statement on Thursday, which said that Trump
planned soon to announce the most ambitious tax reform plan
since the Reagan era, raised investors' hopes for a cut in
corporate tax rates, sending stock markets around the globe
The gains filtered widely through emerging markets. Bourses
in China , South Korea and Malaysia
were up around half a percent, while Taiwan,
South Africa, Poland and Czech Republic
all jumped nearly 1 percent.
"The Chinese data does indeed suggest that global growth is
on a good footing," said Jakob Christensen at Danske Bank.
"The combination of good Chinese growth numbers and the
signals by Trump that he may embark on a tax easing which would
stimulate growth in the U.S., is giving a tailwind to emerging
Rising oil prices boosted Russia's rouble 0.5
percent against the dollar for a second week of gains.
South Africa's rand also rose 0.5 percent, shrugging
off President Jacob Zuma's annual address on Thursday. The event
raised issues of wealth distribution, but descended into chaos
and brawling. The rand, however, was on track for a
small weekly loss.
The Turkish lira too firmed slightly and was headed for a
second straight week of gains, benefiting from a weighted
average central bank funding rate of around 10.38 percent
The Mexican peso, on track for its third week of
gains, strengthened 0.2 percent after the central bank raised
its benchmark interest rate to a nearly eight-year high to curb
rising inflation and currency weakness caused by Trump's trade
Central and eastern European currencies came under some
pressure against the euro. Czech data showed inflation
accelerating in January while minutes from the last central bank
meeting showed a majority of board members saw a likely end to
the capping of the crown in mid-2017.
"Inflation has risen sharply since September," Capital
Economics' Liam Carson told clients, adding that the latest
increase had reinforced the view the cap would go in the coming
"We see the monetary policy committee meeting on 4th May as
the most likely date for the policy shift."
For GRAPHIC on emerging market FX performance 2017, see tmsnrt.rs/2e7eoml
For GRAPHIC on MSCI emerging index performance 2017, see tmsnrt.rs/2dZbdP5
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 928.16 +2.59 +0.28 +7.64
Czech Rep 963.52 +10.06 +1.06 +4.55
Poland 2152.05 +19.65 +0.92 +10.48
Hungary 33128.67 +179.59 +0.55 +3.52
Romania 7667.51 +40.07 +0.53 +8.22
Greece 624.37 +15.58 +2.56 -2.99
Russia 1160.71 -2.48 -0.21 +0.73
South Africa 45386.96 +373.71 +0.83 +3.38
Turkey 88921.05 +90.84 +0.10 +13.80
China 3197.33 +14.15 +0.44 +3.02
India 28334.25 +4.55 +0.02 +6.41
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 27.02 27.02 +0.00 -0.03
Poland 4.30 4.31 +0.18 +2.36
Hungary 308.08 307.91 -0.06 +0.24
Romania 4.50 4.49 -0.07 +0.85
Serbia 123.89 123.87 -0.02 -0.44
Russia 58.68 58.94 +0.43 +4.39
Kazakhstan 322.70 323.60 +0.28 +3.39
Ukraine 27.20 27.04 -0.61 -0.74
South Africa 13.35 13.39 +0.32 +2.88
Kenya 103.45 103.40 -0.05 -1.04
Israel 3.74 3.74 +0.02 +2.87
Turkey 3.67 3.68 +0.24 -3.99
China 6.88 6.87 -0.19 +0.93
India 66.82 66.74 -0.12 +1.68
Brazil 3.13 3.13 +0.00 +3.94
Mexico 20.30 20.34 +0.24 +2.06
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 338 -1 .04 7 58.91 1
All data taken from Reuters at 10:16 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see )
(Additional reporting by Claire Milhench; Editing by Toby