LONDON, June 19 Emerging stocks enjoyed their biggest daily gains in nearly four weeks on Monday though weaker oil prices took a toll on many markets, with Russia's rouble down half a percent.
MSCI's emerging equity benchmark rose 0.7 percent lifted by healthy gains in heavyweights Taiwan and Hong Kong which jumped around 1 percent, with stocks in mainland China matching those gains thanks to signs of tight liquidity conditions easing.
However, currencies failed to take advantage of a tepid dollar after weaker-than-forecast data on U.S. housing and consumer sentiment on Friday cast doubt on the health of the world's top economy. This led the greenback to reverse gains made in the wake of the Federal Reserve's rate hike.
The rouble slipped 0.5 percent against the dollar, trading at its weakest in one month as oil prices slid lower.
The crude price fall prompted a decision by Moscow policy makers on Friday to trim the key interest rate by 25 basis points to 9.00 percent - less than some of analysts had expected.
Explaining the decision, central bank governor Elvira Nabiullina said annual inflation had neared its long-awaited goal of 4 percent as inflationary expectations of households had fallen to an all-time low in May.
"What was interesting about that meeting, more than the decision itself, was the rhetoric," said Cristian Maggio, head of emerging markets strategy at TD Securities.
"The Central Bank of Russia came across more hawkish than what the market had expected."
The market was in the process of repricing, Maggio said. Before the meeting the expectation was 300 basis points worth of cuts over the year.
Other currencies fared little better with Mexico's peso and Israel's shekel easing 0.3 percent while Turkey's lira slipped 0.2 percent.
Currencies across central Europe weakened against the dollar, with the Polish zloty and the Hungarian forint easing 0.2 percent.
Romania's leu hovered near a more than four-year low. The currency was hit by political upheavals last week. The ruing leftists have filed a no-confidence motion in parliament against Prime Minister Sorin Grindeanu.
In the Middle East, Qatari stocks fell 1 percent, hurt by oil and a 2 percent tumble in its biggest petrochemical firm Industries Qatar 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
Morgan Stanley Emrg Mkt Indx 1010.35 +7.23 +0.72 +17.17
Czech Rep 1000.69 +9.92 +1.00 +8.58
Poland 2332.03 +27.53 +1.19 +19.72
Hungary 35918.39 +405.92 +1.14 +12.23
Romania 8430.33 -37.34 -0.44 +18.99
Greece 813.12 +7.00 +0.87 +26.33
Russia 997.09 +2.71 +0.27 -13.47
South Africa 44925.34 +413.19 +0.93 +2.33
Turkey 98994.29 +801.73 +0.82 +26.69
China 3145.02 +21.85 +0.70 +1.33
India 31288.59 +232.19 +0.75 +17.51
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 26.19 26.16 -0.13 +3.12
Poland 4.21 4.21 -0.09 +4.60
Hungary 307.25 307.49 +0.08 +0.51
Romania 4.58 4.58 -0.03 -1.04
Serbia 121.83 121.90 +0.06 +1.25
Russia 57.99 57.74 -0.43 +5.64
Kazakhstan 320.05 320.21 +0.05 +4.25
Ukraine 26.02 26.02 -0.02 +3.75
South Africa 12.81 12.81 -0.03 +7.17
Kenya 103.55 103.45 -0.10 -1.14
Israel 3.52 3.51 -0.25 +9.28
Turkey 3.51 3.50 -0.24 +0.48
China 6.82 6.81 -0.10 +1.85
India 64.38 64.45 +0.11 +5.54
Brazil 3.29 3.29 +0.08 -1.11
Mexico 17.96 17.90 -0.34 +15.31
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 324 1 .02 7 90.48 1
All data taken from Reuters at 08:58 GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT. (Additional reporting by Claire Milhench; Wditing by Raissa Kasolowsky)
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