| LONDON, March 3
LONDON, March 3 Emerging equities fell 1 percent
on Friday and several currencies were set to end the week on a
sour note, hit by jitters over a looming U.S. interest rate rise
and stalling commodity prices.
MSCI's emerging equity benchmark is on track for
its steepest weekly loss since mid November, snapping a
five-week winning streak. Bourses in Turkey, Russia
and South Africa all fell around half a
Heavyweight Korea dropped 1.2 percent and hit a
two-week low amid reports that China had ordered tour operators
to stop selling trips to the country amid rising tensions about
the deployment of a U.S. missile-defence system.
On currencies, Russia's rouble, South Africa's rand
and Turkey's lira all firmed slightly as the
dollar retreated from seven-week highs. They were heading
for weekly losses, however, before a speech by U.S. Federal
Reserve chair Janet Yellen.
"The EM rally has hit a bit of a speed bump," said Kiran
Kowshik, emerging markets strategist at UniCredit.
"The market is moving to price in a hike in March following
the recent comments from Fed officials, that's driving a retreat
in some emerging market currencies."
Waning commodity price strength and uncertainty over U.S.
President Donald Trump's policies are also having an impact, he
In Turkey, the lira could be vulnerable after annual
inflation data came in higher than expected, hitting
double-digit levels and upping the pressure on the central bank.
More broadly, crude and copper prices both
weakened over the week. As a number of Fed officials highlighted
the need for higher interest rates, the implied probability of a
March rate hike has risen to 74 percent from just 30 percent at
the start of the week.
However, a batch of data from some big emerging markets
pointed to solid economic growth. Activity in the Chinese and
Russian services sector continued to expand in February while
South Africa's private sector remained in growth for a sixth
For many investors, the signs of a growth turnaround are
offsetting the possible fallout of Trump threatening to impose
protectionist tariffs on emerging economies.
"Trump cannot upset what is driving emerging markets at this
point in time that is, a cyclical global growth upturn which is
evidenced when you look at global trade," Fabiana Fedeli, senior
portfolio manager at Robeco in Rotterdam, said.
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 927.95 -8.42 -0.90 +7.62
Czech Rep 972.53 -4.63 -0.47 +5.53
Poland 2238.69 -15.82 -0.70 +14.93
Hungary 33137.21 -17.98 -0.05 +3.54
Romania 7985.72 +12.72 +0.16 +12.71
Greece 652.64 -3.40 -0.52 +1.40
Russia 1096.16 -3.66 -0.33 -4.87
South Africa 44333.18 -503.72 -1.12 +0.98
Turkey 89794.11 -139.77 -0.16 +14.92
China 3219.19 -10.84 -0.34 +3.72
India 28811.61 -28.18 -0.10 +8.21
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 27.02 27.02 -0.01 -0.04
Poland 4.31 4.30 -0.21 +2.29
Hungary 309.69 309.32 -0.12 -0.28
Romania 4.53 4.52 -0.22 +0.14
Serbia 123.49 123.54 +0.04 -0.11
Russia 58.77 58.76 -0.02 +4.24
Kazakhstan 317.29 316.09 -0.38 +5.16
Ukraine 27.10 27.00 -0.37 -0.37
South Africa 13.12 13.15 +0.23 +4.67
Kenya 102.65 102.80 +0.15 -0.27
Israel 3.69 3.69 +0.07 +4.32
Turkey 3.72 3.73 +0.30 -5.09
China 6.90 6.89 -0.17 +0.65
India 66.83 66.76 -0.11 +1.66
Brazil 3.16 3.16 +0.00 +3.08
Mexico 19.92 20.00 +0.41 +4.00
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 327 2 .04 7 62.52 1
All data taken from Reuters at 09:56 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
For GRAPHIC on emerging market FX performance 2017, see tmsnrt.rs/2e7eoml
For GRAPHIC on MSCI emerging index performance 2017, see tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see)
(Additional reporting by Claire Milhench and Sujata Rao;
Editing by Toby Davis)