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EMERGING MARKETS-Slump 3 percent as Fed signals end to stimulus
June 20, 2013 / 7:18 AM / 4 years ago

EMERGING MARKETS-Slump 3 percent as Fed signals end to stimulus

LONDON, June 20 (Reuters) - Emerging equities fell 3 percent on Thursday in tandem with most other higher-risk asset classes after Federal Reserve chairman Ben Bernanke laid out a timetable for the end of the U.S. bond buying programme.

MSCI’s emerging equity index chalked up its biggest daily fall since October 2011, bringing weekly losses to over 6 percent as U.S. 10-year Treasury yields surged to 15-month highs.

Sentiment was battered further by weak Chinese data that contributed to pushing Shanghai shares down almost 3 percent. In emerging Europe Russian and Turkish stocks fell 3.5 percent.

Most emerging currencies fell heavily with the Russian rouble and South African rand down more than 1 percent to the dollar while earlier in Asia central banks in India and South Korea intervened to stem currency losses.

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