Emerging markets benefited from a dollar retreat, a global share rally and improving domestic company earnings with the benchmark equity index approaching two-year highs on Wednesday, though weak Chinese inflation checked gains. The dollar slipped around 0.2 percent against a basket of currencies while U.S. yields pulled off one-week highs, allowing most emerging assets to firm. Asian currencies were flat for the most part, weighed down by worries over fresh nuclear tests by North Korea, though the Korean won firmed 0.3 percent after the expected presidential election win for Moon Jae-in, who has promised to try to defuse tensions on the peninsula . "We are seeing good solid growth and on the earnings side, expectations are better than in developed markets. Those are the positives which keep us relatively (upbeat) on emerging markets," said Maarten-Jan Bakkum, an investment strategist at NN Investment Partners. Data showed Chinese factory inflation cooling for a second straight month on the back of falling iron ore and coal prices, sending Shanghai stocks to the lowest since mid-October . However, Hong Kong-listed shares jumped 0.5 percent, lifted by gains in media firm Tencent . "What's slightly worrying is the Chinese slowdown but I don't think that will derail the EM story," Bakkum said. South African shares also hit new 11-month highs, though blue chip Naspers, majority-owned by Tencent, slipped off Tuesday's record highs . In eastern Europe, Polish stocks were led down by metals smelter KGHM , which had come under pressure after the Chinese data weighed on copper prices. The index slipped 0.5 percent but is near a two-year high after recent robust bank earnings. State-run bank Pekao was the latest to post strong earnings, after Alior and ING Slaski . On currency markets, the rand, the Turkish lira and rouble all firmed more than half a percent to the dollar, inching off multi-month lows . The zloty and forint both rose around 0.3 percent to the euro . The emerging new debt issuance torrent continued, with roadshows and deals expected from Ivory Coast and Oman. JPMorgan noted that sovereign debt issuance had already hit $76.9 billion, the highest ever at this stage in the year. It forecast full-year issuance at $140.7 billion, surpassing the previous $128.8 billion touched in 2016. 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 ) Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg on year Morgan Stanley Emrg Mkt Indx 990.46 -0.14 -0.01 +14.87 Czech Rep 1011.08 +0.12 +0.01 +9.71 Poland 2403.96 -9.57 -0.40 +23.41 Hungary 33558.71 +48.72 +0.15 +4.86 Romania 8316.99 +1.29 +0.02 +17.39 Greece 777.97 -0.40 -0.05 +20.87 Russia 1090.72 +5.04 +0.46 -5.35 South Africa 47601.38 +40.30 +0.08 +8.43 Turkey 95341.10 +17.73 +0.02 +22.02 China 3051.75 -28.78 -0.93 -1.67 India 30175.05 +241.80 +0.81 +13.33 Currencies Latest Prev Local Local close currency currency % change % change in 2017 Czech Rep 26.68 26.63 -0.19 +1.23 Poland 4.22 4.23 +0.30 +4.41 Hungary 311.18 311.67 +0.16 -0.76 Romania 4.54 4.55 +0.06 -0.21 Serbia 123.08 123.11 +0.02 +0.22 Russia 58.08 58.39 +0.53 +5.48 Kazakhstan 318.28 318.41 +0.04 +4.83 Ukraine 26.46 26.49 +0.11 +2.04 South Africa 13.57 13.62 +0.36 +1.18 Kenya 103.15 103.10 -0.05 -0.76 Israel 3.61 3.60 -0.14 +6.68 Turkey 3.61 3.62 +0.41 -2.25 China 6.90 6.91 +0.04 +0.58 India 64.61 64.67 +0.09 +5.16 Brazil 3.19 3.19 -0.01 +1.99 Mexico 19.09 19.17 +0.41 +8.53 Debt Index Strip Spd Chg %Rtn Index Sov'gn Debt EMBIG 321 4 .03 7 77.84 1 All data taken from Reuters at 08:43 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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