By Karin Strohecker
LONDON, Oct 6 (Reuters) - Emerging stocks headed on Friday
for their best week since August thanks to stellar gains in
Asia, while currencies suffered at the hands of a buoyant
dollar, with Turkey's lira touching a 12-week low.
MSCI's emerging equity benchmark gained 0.2
percent on the day and was up around 2 percent on the week. Hong
Kong's bourse flirted with a 10-year high, boosted by a
strong performance from Chinese automakers and financials.
The gains reflect the upbeat mood on world stock markets.
The S&P 500 has posted six straight record high closes -
the longest run since 1997 - on expectations U.S. President
Donald Trump will succeed in implementing a tax overhaul
Adding to this was data showing the world's biggest economy
was performing solidly and the U.S. jobs reading later in the
day is expected to confirm this.
The surge in optimism also lifted Treasury yields and took
the dollar index to a seven-week high, which put the
JPMorgan currency index, the ELMI Plus, on track
for a fourth week of losses.
"Emerging market currencies are under broad-based selling
pressure against the dollar, which is benefiting from growing
market expectations that the Trump administration will finally
make some progress on tax reforms, and some hawkish comments
from Fed policymakers," said Rabobank's Piotr Matys.
Matys, who expected any U.S. interest rate increases to be
gradual and tax reforms to be modest, said there was still a
question mark on whether the dollar rally would last.
"We think it is a corrective rebound after the market
adopted a way too bearish view."
Turkey's lira suffered the day's biggest losses,
weakening 0.7 percent to hit its lowest in nearly three months
against the dollar and breaking through a 200-day moving
South Africa's rand edged 0.1 percent lower.
Both currencies - seen as particularly vulnerable to U.S.
interest rate rises due to their economies' large external
financing needs - were on track for more than 1 percent falls
over the week in their fourth straight week of losses.
Russia's rouble was on track for a second week of
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 1104.11 +1.35 +0.12 +28.05
Czech Rep 1060.95 +3.56 +0.34 +15.12
Poland 2480.67 +17.22 +0.70 +27.35
Hungary 37983.00 +106.53 +0.28 +18.69
Romania 7951.54 +46.92 +0.59 +12.23
Greece 746.41 +1.61 +0.22 +15.97
Russia 1144.45 +0.40 +0.03 -0.68
South Africa 51094.81 +308.41 +0.61 +16.38
Turkey 03791.97 -542.35 -0.52 +32.83
China 3349.22 +9.57 +0.29 +7.91
India 31772.50 +180.47 +0.57 +19.33
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 25.83 25.81 -0.09 +4.56
Poland 4.30 4.30 -0.00 +2.33
Hungary 311.65 311.74 +0.03 -0.91
Romania 4.57 4.57 -0.04 -0.84
Serbia 119.00 118.99 -0.01 +3.66
Russia 57.77 57.72 -0.09 +6.05
Kazakhstan 343.55 345.57 +0.59 -2.88
Ukraine 26.75 26.78 +0.11 +0.93
South Africa 13.74 13.68 -0.38 -0.03
Kenya 103.15 103.10 -0.05 -0.76
Israel 3.52 3.52 +0.07 +9.40
Turkey 3.61 3.58 -0.70 -2.25
China 6.65 6.65 -0.00 +4.35
India 65.33 65.14 -0.29 +4.00
Brazil 3.15 3.15 +0.00 +3.15
Mexico 18.53 18.49 -0.25 +11.77
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 301 -1 .04 8 05.09 1
All data taken from Reuters at 09:07 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
(Reporting by Karin Strohecker, additional reporting by Marc
Jones, graphic by Sujata Rao; editing by John Stonestreet)
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