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EMERGING MARKETS-Oil jump and China data lift stocks higher
By Karin Strohecker
LONDON, Dec (Shanghai: 600875.SS - news) 1 (Reuters) - Emerging market stocks edged
higher on Thursday, but currencies struggled for direction after
manufacturing data painted a mixed picture for developing
economies while the prospect of rising oil prices and a weaker
dollar provided some support.
Data from China showed manufacturing in the world's second-
largest economy grew more than expected in November because of
government building projects and a housing boom.
Russian manufacturing rose to a five-year high and Poland's
expanded faster than expected, but Turkey's manufacturing, which
makes up around a third of the economy, contracted and South
Korea saw a fourth straight month of declines
.
The mood was still being buoyed, though, by gains of nearly
10 percent in oil prices after OPEC agreed its first cut in oil
output since 2008 on Wednesday .
"China's Purchasing Manager Index coming in stronger than
expected is a key one - China has such a huge impact on emerging
markets, it affects general risk sentiment, and when things look
okay in China that boosts confidence in the rest of emerging
markets," said Per Hammarlund, chief emerging markets strategist
"Markets are also feeding off yesterday's OPEC decision ...
when sentiment changes for the positive for oil producers, it
tends to lift other emerging markets."
Russia's rouble continued to benefit from the gains
by oil, adding 0.2 percent to the 2 percent it had jumped
on Wednesday. Moscow dollar-denominated stocks climbed 1
percent to their highest in a year and a half.
South Africa's rand strengthened 0.2 percent,
snapping a two-day losing streak, though there was more gloom
for Turkey's lira as it weakened 0.7 percent, retreating
towards the record low it reached last Friday.
Brazil's real also dropped 0.8 percent after its
central bank trimmed interest rates by 25 basis points
.
"Last night's 25 basis point rate cut may as well not have
happened," Simon Quijano-Evans, emerging markets strategist at
Legal & General (LSE: LGEN.L - news) wrote in a note. "The economy clearly needs way
more to support the downside trend with consensus now looking
for only 1 percent GDP next year, and even that looks very
shaky."
Across emerging Europe, currencies eased against the euro
despite PMI data showing Czech, Hungarian and Polish
manufacturing picking up pace again after slowing in the third
quarter. They are expected to outstrip growth in the
neighbouring 19-country euro zone .
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
on year
Morgan Stanley (Xetra: 885836 - news)
Emrg Mkt Indx 864.37 +1.54 +0.18 +8.84
Czech Rep 884.98 +3.76 +0.43 -7.46
Poland 1787.17 -11.05 -0.61 -3.87
Hungary 30103.43 +89.39 +0.30 +25.85
Romania 6833.93 +44.43 +0.65 -2.43
Greece 624.32 -4.43 -0.70 -1.11
Russia 1043.95 +14.90 +1.45 +37.90
South Africa 43473.22 -218.20 -0.50 -5.07
Turkey 72750.45 -1244.74 -1.68 +1.43
China 3274.07 +24.04 +0.74 -7.49
India 26553.97 -98.84 -0.37 +1.67
Currencies Latest Prev Local Local
close currency currency
% change % change
in 2016
Czech Rep 27.05 27.02 -0.09 -0.19
Poland 4.46 4.45 -0.22 -4.54
Hungary 313.11 312.37 -0.24 +0.49
Romania 4.52 4.50 -0.44 +0.07
Serbia 123.05 122.96 -0.07 -1.28
Russia 64.03 64.08 +0.08 +13.94
Kazakhstan 339.67 339.67 +0.00 +0.24
Ukraine 25.65 25.52 -0.51 -6.62
South Africa 14.05 14.08 +0.25 +10.09
Kenya 101.75 101.70 -0.05 +0.44
Israel 3.83 3.83 -0.03 +1.50
Turkey 3.46 3.44 -0.73 -15.73
China 6.89 6.88 -0.13 -5.81
India 68.35 68.59 +0.34 -3.16
Brazil 3.41 3.38 -0.83 +16.07
Mexico 20.57 20.57 -0.02 -16.54
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 383 -4 .04 7 28.30 1
All data taken from Reuters at 10:13 GMT. Currency percent
change calculated from the daily U.S. close at 2130 GMT.
For GRAPHIC on emerging market FX performance 2016, see http://tmsnrt.rs/2e7eoml
For GRAPHIC on MSCI (Frankfurt: 3HM.F - news) emerging index performance 2016, see http://tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see )
(Additional reporting by Claire Milhench, editing by Larry
King)
