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EMERGING MARKETS-Emerging stocks, currencies sail higher on Clinton prospects
November 7, 2016 / 10:48 AM / a year ago

EMERGING MARKETS-Emerging stocks, currencies sail higher on Clinton prospects

LONDON, Nov 7 (Reuters) - Emerging stocks snapped a four-day losing streak on Monday while currencies led by the Mexican peso sailed higher, thanks to renewed bets on victory for Democrat Hillary Clinton in Tuesday’s U.S. presidential election.

MSCI’s emerging markets benchmark jumped 1 percent, chalking up its biggest daily rise in 20 days, helped by solid advances in Asia , Turkey, South Africa and emerging Europe .

The gains followed an FBI announcement on Sunday that the agency stood by its earlier recommendation that no criminal charges were warranted against Clinton over using a private email server for government work lifting a cloud over her campaign for U.S. president.

“What the market is now totally focused on is the upcoming election in the U.S.,” said Cristian Maggio, head of emerging markets strategy at TD Securities.

“The tone was a little more pessimistic last week, but I don’t see a euphoric start today either...The market remains cautiously positioned for a Clinton victory.”

The dollar posted the biggest gain in weeks and most emerging currencies joined the rally. The Mexican peso roared more than 2 percent higher against the greenback.

Russia’s rouble snapped a three-day losing streak to strengthen 1 percent, also helped by higher crude oil futures , while South Africa’s rand nearly matched those gains.

Meanwhile in Egypt, the pound weakened nearly 5 percent after last week’s float, nearing 17 to the dollar, as the finance minister said Cairo would submit a letter of intent to the International Monteary Fund in its efforts to get a $12 billion deal with the lender started.

“We’d like to see the market settle,” said Morten Bugge, CIO at Global Evolution. “I am sure there is going to be some speculation to see the pound move weaker and test the system a bit.”

Separately, Saudi Arabia said it would halt all shipments of oil products to Egypt indefinitely, suggesting a deepening rift between the Arab world’s richest country and its most populous one.

In central Europe, Hungary’s forint weakened 0.2 percent versus the euro, despite Moody’s raising the country’s credit rating to investment grade late on Friday, citing expectations of gradual improvement in debt metrics and reduced external vulnerability.

Rating agencies Fitch and Standard and Poor’s had lifted the country’s debt rating back into investment grade earlier this year.

Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg

on year

Morgan Stanley Emrg Mkt Indx 888.62 +8.50 +0.97 +11.90

Czech Rep 899.72 +5.90 +0.66 -5.92

Poland 1775.99 +17.77 +1.01 -4.47

Hungary 30264.22 +246.99 +0.82 +26.52

Romania 6807.77 +26.87 +0.40 -2.81

Greece 582.24 +8.32 +1.45 -7.78

Russia 969.87 -1.33 -0.14 +28.11

South Africa 43574.24 +344.59 +0.80 -4.85

Turkey 75797.12 +1529.95 +2.06 +5.67

China 3133.40 +8.08 +0.26 -11.47

India 27458.99 +184.84 +0.68 +5.14

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2016

Czech Rep 27.02 27.01 -0.04 -0.07

Poland 4.33 4.33 +0.03 -1.56

Hungary 306.24 305.33 -0.30 +2.74

Romania 4.50 4.50 -0.02 +0.46

Serbia 122.96 122.85 -0.09 -1.21

Russia 63.82 64.45 +0.99 +14.31

Kazakhstan 340.30 338.50 -0.53 +0.06

Ukraine 25.56 25.57 +0.02 -6.29

South Africa 13.47 13.57 +0.74 +14.78

Kenya 101.58 101.60 +0.02 +0.61

Israel 3.81 3.78 -0.60 +2.10

Turkey 3.16 3.16 -0.01 -7.57

China 6.77 6.75 -0.31 -4.17

India 66.75 66.79 +0.06 -0.82

Brazil 3.23 3.23 +0.00 +22.50

Mexico 18.69 19.02 +1.75 -8.14

Debt Index Strip Spd Chg %Rtn Index

Sov‘gn Debt EMBIG 369 -4 .05 7 58.95 1

All data taken from Reuters at 10:18 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 Helen Reid; editing by Mark Heinrich)

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