Emerging market stocks fell on Monday although currencies mostly strengthened against a lacklustre dollar as investors awaited policy direction from the White House on a range of issues.
MSCI's emerging market index fell 0.3 percent after tumbling nearly 1 percent on Friday, with bourses across much of Asia , South Africa, Russia and Greece chalking up losses.
Chinese mainland blue chips fell 0.8 percent, their biggest one-day loss for two months as Beijing's security regulator ramped up its crack down on speculators. Hong Kong shares slipped to 12-day lows.
But currencies started the week on a brighter note. Russia's rouble recorded its biggest gain for two weeks, rising 1.3 percent and matching a jump in oil prices. Turkey's lira rose 0.5 percent, reversing some of Friday's losses. But China's yuan and South Africa's rand both weakened against the dollar.
"The dollar is trying to move higher and emerging markets currencies are very sensitive to 10-year U.S. Treasury yields - if you have a sharp rise in 10-year yields you see quite a sell off in emerging markets," ABN Amro foreign exchange strategist Georgette Boele said.
Much of investors' focus was on Tuesday, when U.S. President Donald Trump is scheduled to speak to a joint session of Congress and unveil some elements of his plans to cut taxes and boost infrastructure spending.
J.P.Morgan analysts told clients they expected Trump's speech to "probably contain more negative EM language" though no dramatic anti-trade actions but that they were generally waiting for announcements on U.S trade policy to determine how these would affect emerging markets.
"This year, emerging market assets have been outperforming, putting managers in a bind: Do we keep waiting for the eventual anti-emerging market U.S. trade measures, or were all these threats just a negotiations tactic that will eventually lead to growth-positive compromises?" they said in a note.
In Israel, policy makers are expected to leave short-term interest rates unchanged at 0.1 percent for a 24th straight month amid benign inflation partly due to a strong shekel, with the central bank having intervened to contain the currency.
Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg
on year
Morgan Stanley Emrg Mkt Indx 940.16 -3.36 -0.36 +9.03
Czech Rep 959.28 -0.77 -0.08 +4.09
Poland 2212.16 +0.12 +0.01 +13.57
Hungary 33068.95 +182.92 +0.56 +3.33
Romania 7973.97 +20.10 +0.25 +12.55
Greece 645.37 -4.15 -0.64 +0.27
Russia 1132.45 +3.36 +0.30 -1.73
South Africa 44550.82 -29.69 -0.07 +1.48
Turkey 88122.78 -135.67 -0.15 +12.78
China 3229.17 -24.26 -0.75 +4.04
India 28803.61 -89.36 -0.31 +8.18
Currencies Latest Prev Local Local
close currency currency
% change % change
in 2017
Czech Rep 27.00 27.01 +0.03 +0.02
Poland 4.31 4.31 -0.05 +2.16
Hungary 307.89 308.23 +0.11 +0.30
Romania 4.51 4.52 +0.28 +0.59
Serbia 123.82 123.85 +0.02 -0.38
Russia 57.73 58.47 +1.28 +6.12
Kazakhstan 312.34 311.66 -0.22 +6.82
Ukraine 27.04 26.90 -0.52 -0.15
South Africa 12.94 12.96 +0.14 +6.13
Kenya 103.30 103.50 +0.19 -0.90
Israel 3.68 3.69 +0.23 +4.62
Turkey 3.59 3.61 +0.43 -1.77
China 6.87 6.86 -0.07 +1.08
India 66.73 66.62 -0.16 +1.83
Brazil 3.11 3.11 -0.00 +4.60
Mexico 19.85 19.91 +0.29 +4.36
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 335 -2 .06 7 65.62 1
All data taken from Reuters at 10:07 GMT. Currency percent change calculated from the daily U.S.close at 2130 GMT.
For GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see)
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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