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EMERGING MARKETS-Emerging stocks hit one-month low, currencies mixed
December 22, 2016 / 10:37 AM / a year ago

EMERGING MARKETS-Emerging stocks hit one-month low, currencies mixed

LONDON, Dec 22 (Reuters) - Emerging stocks hit a one-month low on Thursday though currencies delivered a mixed performance as the dollar pulled away from its 14-year high, with Russia’s rouble hitting the strongest level in over a week.

MSCI’s emerging market index fell 0.8 percent, having chalked up losses in six of the past seven sessions, with bourses in Russia , Taiwan, India and Hong Kong all down around 1 percent.

Yet South Africa’s rand and Russia’s rouble strengthened 0.5 percent against the dollar, which edged lower after hitting a 14-year high on Tuesday.

And U.S. 10-year Treasury yields, a reference point for emerging market debt, also eased after hitting a more than two-year high in the wake of last week’s Federal Reserve meeting.

“(It‘s) a relatively calm backdrop in U.S. dollar and U.S. Treasuries ahead of the Xmas weekend as oil attempts to find ‘comfortable’ levels,” Simon Quijano-Evans, a strategist at Legal & General Investment Management, told clients.

Yet other currencies struggled. China’s yuan slipped 0.1 percent, weighed down by corporate dollar demand as persistent downward pressure on bets of more losses offset a firmer midpoint.

South Korea’s won hit a more than nine-month low and the Taiwan dollar touched a near five-month trough.

“Korea’s won (is) clearly suffering from the openness of its economy and thus vulnerability to global trade risks, economic underperformance due to corporate issues and strikes, and political noise that culminated in the impeachment of president Park (Geun-hye),” said Quijano-Evans.

In Saudi Arabia, the government was expected to release the budget for 2017, which will boost spending to support economic growth while raising domestic energy prices to ease the government’s subsidy burden, according to sources.

Investors were also watching out for central bank meetings, with policymakers in the Philippines keeping interest rates steady at 3.0 percent as expected.

Central bankers will also meet in Czech Republic, where no change is expected.

“It could be interesting to see any possible comments regarding the timing of the exit from the current currency regime that keeps the exchange rate at slightly above 27, because of the recent, surprising increase in inflation,” Erste Group analyst Zoltan Arokszallasi wrote in a note.

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

on year

Morgan Stanley Emrg Mkt Indx 844.39 -6.78 -0.80 +6.33

Czech Rep 917.67 +0.12 +0.01 -4.04

Poland 1925.02 -2.88 -0.15 +3.54

Hungary 31742.32 -22.98 -0.07 +32.70

Romania 7017.37 -5.20 -0.07 +0.19

Greece 630.49 -8.50 -1.33 -0.14

Russia 1131.60 -9.28 -0.81 +49.48

South Africa 43253.11 -310.88 -0.71 -5.56

Turkey 77699.52 +80.05 +0.10 +8.33

China 3140.15 +2.73 +0.09 -11.27

India 26007.90 -234.48 -0.89 -0.42

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2016

Czech Rep 27.02 27.01 -0.05 -0.07

Poland 4.41 4.41 -0.07 -3.47

Hungary 310.16 310.14 -0.01 +1.44

Romania 4.51 4.52 +0.03 +0.12

Serbia 123.59 123.57 -0.02 -1.72

Russia 60.84 61.14 +0.49 +19.91

Kazakhstan 333.60 332.41 -0.36 +2.07

Ukraine 26.25 26.38 +0.50 -8.75

South Africa 13.97 14.00 +0.22 +10.69

Kenya 102.33 102.30 -0.03 -0.13

Israel 3.82 3.82 -0.02 +1.64

Turkey 3.51 3.51 +0.03 -16.82

China 6.95 6.94 -0.12 -6.55

India 67.95 67.83 -0.18 -2.58

Brazil 3.33 3.33 -0.00 +19.02

Mexico 20.62 20.54 -0.36 -16.72

Debt Index Strip Spd Chg %Rtn Index

Sov‘gn Debt EMBIG 363 1 .02 7 35.77 1

All data taken from Reuters at 10:14 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT.

For GRAPHIC on emerging market FX performance 2016, see tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2016, see tmsnrt.rs/2dZbdP5

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see )

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