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EMERGING MARKETS-Cautious Fed helps emerging stocks, currencies to weekly gains
July 14, 2017 / 9:15 AM / 5 months ago

EMERGING MARKETS-Cautious Fed helps emerging stocks, currencies to weekly gains

LONDON, July 14 (Reuters) - Emerging stocks were on track for their best week since March on Friday and currencies looked to chalk up solid weekly gains, sailing the slipstream of cautious tones from the U.S. Federal Reserve and a tepid dollar.

MSCI’s emerging market index edged higher on the day to scale a new 26-month peak, poised for a near 4 percent gain over the week. The index was lifted by stellar gains across Asia, with heavyweight South Korea and the India bourse touching record highs, while others such as Hong Kong hovered around multi-month peaks.

Currencies were mixed on the day against the dollar which retreated to a nine-month low earlier in the week following the remarks on rate hikes by Federal Reserve Chair Janet Yellen.

However, most were on track for solid weekly gains. The South African rand and the Turkish lira - the two currencies most vulnerable to higher U.S. interest rates were on track to snap a three-week losing streak and strengthen 1.5 percent over the week.

Russia’s rouble was up 1.2 percent on the week, finding some support in oil prices looking to end the week around 4 percent higher.

“Global risk appetite has been good, most major stock markets are up over the week ... thanks to a mixture of Yellen and OK growth but not threatening growth,” said Paul Fage, senior emerging markets strategist at TD Securities.

Adding to the chipper mood was Fitch Ratings, which early on Friday confirmed its A+ rating on China with a stable outlook, citing the strength of the external finances and the macroeconomic record of the world’s second largest economy.

But investors were also awaiting a host of U.S. economic indicators, including core inflation, retail sales and industrial production for June later in the session for more insight into how the Fed might proceed with monetary policy tightening this year.

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

on year

Morgan Stanley Emrg Mkt Indx 1042.45 +1.73 +0.17 +20.90

Czech Rep 1001.14 +0.22 +0.02 +8.63

Poland 2340.12 -10.71 -0.46 +20.13

Hungary 35891.02 -252.35 -0.70 +12.15

Romania 8151.90 -9.09 -0.11 +15.06

Greece 856.02 +2.48 +0.29 +33.00

Russia 1036.24 +6.35 +0.62 -10.07

South Africa 47145.49 +89.47 +0.19 +7.39

Turkey 04687.90 +477.68 +0.46 +33.98

China 3222.31 +4.15 +0.13 +3.82

India 32014.01 -23.37 -0.07 +20.23

Currencies Latest Prev Local Local

close currency currency

% change % change

in 2017

Czech Rep 26.09 26.10 +0.05 +3.52

Poland 4.22 4.22 +0.11 +4.40

Hungary 306.28 306.48 +0.07 +0.83

Romania 4.56 4.56 +0.05 -0.60

Serbia 120.00 120.15 +0.13 +2.79

Russia 59.74 59.76 +0.04 +2.55

Kazakhstan 327.28 327.96 +0.21 +1.95

Ukraine 26.02 25.98 -0.15 +3.77

South Africa 13.15 13.20 +0.32 +4.39

Kenya 103.85 103.90 +0.05 -1.43

Israel 3.54 3.53 -0.09 +8.86

Turkey 3.56 3.56 +0.02 -1.05

China 6.78 6.78 -0.02 +2.35

India 64.46 64.46 +0.00 +5.41

Brazil 3.21 3.21 +0.06 +1.30

Mexico 17.67 17.67 +0.03 +17.25

Debt Index Strip Spd Chg %Rtn Index

Sov‘gn Debt EMBIG 325 0 .02 7 85.06 1

All data taken from Reuters at 08:55 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT. (Reporting by Karin Strohecker; Editing by Alison Williams)

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