By Karin Strohecker
LONDON, Sept 6 Emerging stocks booked a third
day of gains to approach new one-year highs, helped by recent
weak U.S. data, while South African assets benefited from
forecast-beating second quarter growth data.
MSCI's emerging market index added 0.9 percent and
flirted with fresh one-year highs after being lifted by strong
gains across Asia, where stocks in Taiwan and India
jumped more than 1 percent while equities in Russia
and Hungary rose half a percentage point.
The benchmark has rallied more than 3 percent since hitting
an intraday low on Thursday when it was whacked by hawkishness
around a central bankers' meeting in Jackson Hole. It then
bounced back after U.S. jobs and factory data that reduced
expectations of a rate rise this month.
"If there were any questions about a September rate hike in
the U.S., that has been pushed back to December," said William
Jackson, senior EMC economist at Capital Economics.
Recent economic data from emerging market economies had also
improved, he added
"We're unlikely to see the gains we saw in emerging market
equities earlier in August, but there is some scope for it to
The upbeat sentiment towards emerging markets helped
investment manager Ashmore post forecast-beating
full-year profits. But while investors added to positions in
emerging markets in the past year, Ashmore said many
institutional investors would take longer to react to improving
Currencies broadly strengthened against a softer dollar
South Africa led the pack, with the rand adding more
than 1 percent in to hit the strongest in 11 days. The rand has
risen for four straight sessions, recovering from two-month low
it hit last week on back of escalating political tensions within
the ruling ANC Party.
The cost of insuring exposure to South African sovereign
debt was at its lowest in seven days, according to Markit.
Markets should gain more traction after data showed second
quarter gross domestic product expanded 3.3 percent on the
quarter versus forecasts of 2.3 percent.
Russia's rouble struggled 0.1 percent higher as Brent
crude prices slipped following two days of solid gains
and as hopes for producers to support prices wanes.
In Turkey, the lira traded flat as Deputy Prime
Minister Nurettin Canikli re-iterated that interest rates must
be lowered and the government was in no doubt that the recent
downward trend in rates will be lasting.
Across emerging Europe, Poland's zloty rose 0.2 percent
against the euro before Wednesday's central bank meeting that is
expected to keep rates unchanged.
Romania confirmed its flash second quarter GDP, showing the
economy had expanded a solid 6 percent year-on-year with
domestic consumption nearly hitting double digits, putting it at
the top of regional growth stakes.
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 917.32 +7.72 +0.85 +15.51
Czech Rep 883.63 +2.79 +0.32 -7.60
Poland 1778.60 -9.42 -0.53 -4.33
Hungary 28502.61 +94.43 +0.33 +19.15
Romania 7019.28 -6.77 -0.10 +0.21
Greece 576.18 -2.09 -0.36 -8.74
Russia 982.88 +5.43 +0.56 +29.83
South Africa 47019.75 -58.94 -0.13 +2.67
Turkey 77925.75 +134.14 +0.17 +8.64
China 3091.45 +19.35 +0.63 -12.65
India 28849.07 +316.96 +1.11 +10.46
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 27.02 27.01 -0.01 -0.06
Poland 4.34 4.34 +0.08 -1.82
Hungary 309.79 309.39 -0.13 +1.57
Romania 4.45 4.45 -0.07 +1.56
Serbia 123.24 123.22 -0.02 -1.44
Russia 64.85 64.94 +0.14 +12.50
Kazakhstan 339.92 340.06 +0.04 +0.17
Ukraine 26.81 26.70 -0.41 -10.66
South Africa 14.21 14.37 +1.16 +8.82
Kenya 101.25 101.30 +0.05 +0.94
Israel 3.76 3.76 -0.01 +3.32
Turkey 2.94 2.94 +0.12 -0.83
China 6.68 6.68 -0.07 -2.81
India 66.54 66.42 -0.17 -0.51
Brazil 3.25 3.28 +0.84 +21.65
Mexico 18.50 18.56 +0.30 -7.21
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 358 -1 .04 7 68.37 1
All data taken from Reuters at 08:56 GMT.
Currency percent change calculated from the daily U.S. close at
For GRAPHIC on emerging market FX performance 2016, see link.reuters.com/jus35t
For GRAPHIC on MSCI emerging index performance 2016, see link.reuters.com/weh36s
For GRAPHIC on MSCI emerging Europe performance 2016, see link.reuters.com/jun28s
For GRAPHIC on MSCI frontier index performance 2016, see link.reuters.com/zyh97s
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see )
(Additional reporting Claire Milhench; Editing by Raissa