Emerging market stocks hit near six-week top on China stimulus signals
* Asian stocks rise on signals of further Chinese stimulus
* Yuan can be kept stable despite stimulus - PBOC official
* Turkish lira soft, data shows uptick in unemployment
* Yield on J.P. Morgan's GBI-EM index lowest since May
By Aaron Saldanha
Jan 15 (Reuters) - Emerging market stocks rose on Tuesday,
helped by Chinese shares clocking their best day in a week and a
half on signs of more stimulus, while developing world
currencies broadly firmed against a soft dollar ahead of
Britain's parliamentary vote on Brexit.
Chinese shares gained as Beijing signalled more stimulus to
bolster the world's second largest economy, a day after
weaker-than-expected monthly trade data prompted deeper fears
about the toll a bruising trade war with the United States was
Concerns about slowing global growth raised expectations of
a pause in U.S. Federal Reserve rate hikes, weakening the dollar
in the run-up to the parliamentary vote on Prime Minister
Theresa May's European Union divorce deal.
MSCI's developing world stocks benchmark rose 1.1
percent and was near a six-week peak, pushed up by gains in
index heavyweights China , South Korea
and Taiwan, which all ended at least 1 percent higher.
China's yuan firmed in the onshore market, with a
vice governor of the People's Bank of China saying authorities
are confident of keeping the yuan rate stable despite cuts to
banks reserves, a message markets found credible.
China has shown in the past that "if they have a policy,
they will stick by it even if it involves running down some of
their foreign exchange reserves", said Gareth Leather, a senior
economist with Capital Economics.
Turkey's lira softened 0.4 percent. Unemployment in
the country ticked up to 11.6 percent in the September-November
period from the August-October period, data on Tuesday showed.
South African stocks were on pace for their highest
closing level in more than two months. Internet group Naspers
Ltd notched a 0.6 percent gain, as Tencent Holdings
Ltd rose 2.6 percent.
Naspers holds a stake of about 31.1 percent in the Chinese
internet giant, according to Refinitiv Eikon data.
The rand weakened on technical factors as the
dollar-rand pair started trade in close proximity to the 200-day
moving average, after which bullish technicals traders pushed
the pair up as much as 0.4 percent.
Russia's rouble was little changed with the central
bank was set to resume foreign exchange purchases after a
five-month hiatus. Higher oil prices helped Russian
stocks rise 0.6 percent.
Emerging European currencies such as Hungary's forint
, Poland's zloty and Romania's leu
traded marginally firmer against the euro ahead of the Brexit
A rally in emerging market local currency government bonds
saw the yield on JP Morgan's GBI-EM index hit its
lowest level since May.
The index, which effectively aggregates developing world
governments' borrowing costs, saw its yield drop to 6.394
percent having stood at almost 6.7 percent in mid-December.
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Aaron Saldanha in Bengaluru and Winni Zhou in
Editing by Alison Williams)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.