By Claire Milhench
LONDON, Sept 13 (Reuters) - A pullback in the shares of
Apple component suppliers in Asia knocked emerging equities off
a three-year high on Wednesday, but China's yuan steadied after
three days of losses.
MSCI's benchmark emerging equities index was down 0.1
percent with Asian manufacturing markets leading the
losses after Apple disappointed by saying its new
iPhone would ship later than expected.
Although Asian markets overall touched a fresh 10-year high,
tracking record highs on Wall Street, several emerging market
index heavyweights fell.
MSCI's emerging tech index, the biggest part
of the overall MSCI emerging market benchmark, retreated from
record high after gaining almost 50 percent so far this year.
"Against the backdrop of Apple we are seeing a drop in the
hardware and semiconductor subsectors, which make up some 40
percent of the EM IT sector," said Peter Garnry, head of equity
strategy at Saxo Bank in Stockholm.
"There is some retreat but there were very strong
expectations leading up to the iPhone launch -- even Apple
shares have fallen -- but we think that overall, the environment
for IT stocks continues to be positive."
Taiwan stocks dropped 0.7 percent, with shares of
Apple supplier Taiwan Semiconductor Manufacturing Co,
the world's biggest contract chip maker, falling 0.5 percent,
while Hon Hai Precision Industry slipped 1.3 percent.
Hong Kong shares fell 0.3 percent whilst Chinese
Apple-linked stocks such as Zhejiang Crystal Optech
tumbled 6.7 percent and Goertek shed 3.6 percent.
South Korean shares slipped 0.2 percent, weighed
down also by lingering worries over tensions between the United
States and nuclear-armed North Korea.
U.S. President Donald Trump said the new sanctions agreed
on North Korea were nothing compared to what would have to
happen to deal with Pyongyang's nuclear programme.
Secondary sanctions on Chinese banks are on hold to allow
Beijing to show it will enforce the curbs.
China's yuan firmed after three straight sessions of
losses, rising 0.1 percent, although the central bank fixed the
yuan at a weaker midpoint.
Chinese mainland shares also traded up
around 0.15 percent.
South Africa's rand was one of the biggest fallers,
weakening 0.3 percent against the dollar. On Tuesday court
papers showed that South Africa's anti-graft watchdog had
consulted President Jacob Zuma's legal advisers on a proposal to
change the central bank's mandate. The bank says this undermined
the watchdog's independence.
The Polish zloty weakened 0.2 percent against the
euro, whilst Polish shares also fell 0.2 percent. The
European Union has given Poland one month to address concerns
over a judiciary overhaul or face a court challenge.
Hungary's forint slipped 0.15 percent against the
euro and Budapest stocks fell 0.2 percent, with Hungary
under pressure to implement a ruling by the EU's top court to
take in refugees.
Analysts at Societe Generale noted that inflows into
emerging market assets had slowed, but any meaningful weakness
in currencies should be viewed as a buying opportunity until
there was a "tangible deterioration" in underlying fundamentals.
The Brazilian real was steady after posting its
biggest daily drop in a month on Tuesday when a Supreme Court
judge authorised a fresh investigation into President Michel
Temer for suspected corruption.
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
Emrg Mkt Indx 1101.29 -0.97 -0.09 +27.72
Czech Rep 1039.03 +2.95 +0.28 +12.74
Poland 2503.97 -1.91 -0.08 +28.55
Hungary 38027.35 -49.53 -0.13 +18.82
Romania 8056.23 +46.79 +0.58 +13.71
Greece 810.47 -0.28 -0.03 +25.92
Russia 1130.57 +6.34 +0.56 -1.89
South Africa 49896.30 -74.55 -0.15 +13.65
Turkey 09288.71 +159.06 +0.15 +39.87
China 3385.54 +6.05 +0.18 +9.08
India 32302.11 +143.45 +0.45 +21.32
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 26.11 26.10 -0.02 +3.45
Poland 4.26 4.26 -0.19 +3.28
Hungary 307.53 307.00 -0.17 +0.42
Romania 4.60 4.60 -0.03 -1.42
Serbia 119.14 119.21 +0.06 +3.53
Russia 57.58 57.63 +0.10 +6.40
Kazakhstan 339.07 339.42 +0.10 -1.60
Ukraine 26.06 26.00 -0.23 +3.61
South Africa 13.04 13.00 -0.32 +5.33
Kenya 102.85 102.80 -0.05 -0.47
Israel 3.54 3.54 +0.13 +8.86
Turkey 3.43 3.43 +0.00 +2.76
China 6.53 6.53 +0.09 +6.37
India 63.98 64.03 +0.07 +6.20
Brazil 3.13 3.12 -0.02 +4.10
Mexico 17.74 17.73 -0.07 +16.77
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 312 1 .01 8 06.78 1
(Reporting by Claire Milhench; additional reporting and graphic
by Sujata Rao; Editing by Raissa Kasolowsky)
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