LONDON Nov 30 Emerging stocks rose marginally
on Wednesday but were headed for their biggest monthly fall
since January, while currencies wilting under a fresh onslaught
from the dollar were also set to close November with hefty
Concerns were also growing about China, where a growing
liquidity squeeze caused by Beijing's efforts to support the
yuan is already spilling into global commodity markets.
The month has been a dramatic one for emerging markets,
which have been battered by the U.S election win for Donald
Trump on a protectionist, anti-immigration platform and by the
resulting surge in the dollar and U.S. yields.
MSCI's emerging equity index rose 0.3 percent thanks to
oil's 2 percent surge before a crucial OPEC producers' meeting,
but it has lost 5 percent in November. Asian shares
rose to two-week highs but are in the red for the month
In currencies, the Turkish lira and Mexican peso have lost
around 8-9 percent versus the dollar for the biggest monthly
falls since 2008 and 2012 respectively .
Most currencies were down marginally on Wednesday against
the greenback as investors stayed on the sidelines before the
OPEC meeting and Friday jobs data in the United States.
"The emerging currency universe is doing relatively well,
correcting down just 0.3 percent on average. That could be the
result of international investors taking a pause for now,
waiting for more clarity on the global markets, including the
oil one, and not rushing to build positions in risk assets,"
analysts at VTB Capital wrote.
The exception was the South African rand. It was pushed down
almost 1 percent by the China concerns, which are
leading to a sell-off on some metals markets.
The yuan rose slightly thanks to a third day of dollar sales
by state banks but was set for its worst month since the August
2015 devaluation and is down 6 percent this year against
But authorities' efforts to prop up the currency are sucking
up bank liquidity and raising local borrowing costs. Overnight
Shanghai Interbank Offered Rates (SHIBOR) rose for
the 15th straight day to the highest since Sept. 30.
If costs for Chinese investors rise further, it could
threaten the months-long commodity rally that has helped
underpin emerging markets this year. Coal, zinc and steel prices
are already feeling the heat.
"Both longs and shorts are fleeing the commodities market,"
said Liu Xinwei, steel analyst at Sublime in Beijing. "Capital
is flowing into risk-free products, as Treasury...yields
Emerging market investors will get an indication of the
sector's economic health from growth and trade data due in many
countries. India, in the midst of a growth-crimping
demonetisation experiment, will release GDP data that should
show 7.5 percent growth in the September quarter.
Investors are also waiting to see if Brazil's economy shows
green shoots after shrinking for six straight quarters but
market volatility should restrict the central bank to a 25 basis
point interest rate cut at its meeting later in the day.
Turkey and South Africa, two countries with big trade
deficits, are to report third quarter trade data.
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 )
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 860.87 +2.40 +0.28 +8.40
Czech Rep 879.17 -0.16 -0.02 -8.07
Poland 1798.56 +18.52 +1.04 -3.26
Hungary 30060.09 +243.79 +0.82 +25.67
Romania 6833.93 +44.43 +0.65 -2.43
Greece 615.58 +4.98 +0.82 -2.50
Russia 1014.64 +8.82 +0.88 +34.03
South Africa 43915.78 +313.06 +0.72 -4.11
Turkey 74401.18 +195.70 +0.26 +3.73
China 3250.59 -32.34 -0.98 -8.15
India 26567.06 +173.05 +0.66 +1.72
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 27.07 27.03 -0.12 -0.25
Poland 4.44 4.43 -0.05 -4.00
Hungary 310.99 311.29 +0.10 +1.17
Romania 4.50 4.50 +0.03 +0.34
Serbia 123.10 123.06 -0.03 -1.32
Russia 64.86 65.06 +0.31 +12.47
Kazakhstan 340.80 340.47 -0.10 -0.09
Ukraine 25.55 25.57 +0.08 -6.25
South Africa 13.97 13.87 -0.67 +10.70
Kenya 101.75 101.70 -0.05 +0.44
Israel 3.83 3.83 +0.05 +1.47
Turkey 3.41 3.41 -0.16 -14.55
China 6.88 6.89 +0.15 -5.68
India 68.44 68.61 +0.24 -3.28
Brazil 3.45 3.40 -1.48 +14.81
Mexico 20.62 20.60 -0.10 -16.72
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 390 1 .01 7 29.22 1
All data taken from Reuters at 08:54 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
(Editing by Mark Trevelyan)