EM stocks slide but China gains cap some losses; Adani rout deepens
China stocks edge up as holiday travel rebound lifts sentiment
Hungary c.bank could start "cautious" rate cuts once CPI slows - minister
Adani's market loss swells to $66 bln; India share dip
Pakistani rupee hits all-time low to meet IMF demands
EM stocks extend losses, currencies add 0.3%
By Bansari Mayur Kamdar
Jan 30 (Reuters) -Emerging market stocks fell on Monday, as gains in Chinese shares after a week-long Lunar New Year break were offset by a slide in Indian equities led by the losses in Adani group companies and Hong Kong stocks receded from 11-month highs.
The MSCI's index for emerging market stocks .MSCIEF fell 0.7% at 0845 GMT on Monday.
In India, most Adani group shares extended their sharp drop as the conglomerate's rebuttal of a U.S. short-seller's criticism failed to pacify investors, driving stock market losses for the companies to $66 billion over three days.
Elsewhere in Asia, Hong Kong's Hang Seng index .HSI retreated 2.7%, after two days of sharp gains.
Chinese stocks .SSEC edged higher as markets resumed trading after a week-long Lunar New Year break, while Taiwan shares .TWII hit their highest since late June.
Emerging market stocks have rallied nearly 9% since the start of this year, outperforming their currency counterparts.
"At a headline level, the January rally in emerging market equity has been supported by the December announcement that China would scrap the country's zero COVID policy and falling inflation expectations," said Charles Sunnucks, emerging markets analyst at Oldfield Partners.
Emerging market currencies .MIEM00000CUS gained slightly, rising 0.3%.
In central and eastern Europe, the Hungarian forint EURHUF= slid 0.4% against the euro.
Hungary's January annual inflation is expected to rise above 25% but in February, price growth will start slowing which could then allow the central bank to gradually start reducing its interest rates, the minister for economic development said on Sunday.
The Russian rouble RUBUTSTN=MCX hovered near 69.50 against the greenback, with some support set to ebb later this week as companies make month-end tax payments.
The Pakistani rupee PKR=PK hit a record low, extending its sharp fall since an artificial cap on the currency was lifted last week to move it to a market-based exchange rate.
"An acute mix of very low foreign reserves, wide current account deficit, high short-term external debt, high inflation, an unsustainable currency rate management, combined with a government lacking the political mandate to take unpopular corrective actions all point to further downside for the (Pakistani) rupee," said Hasnain Malik, director of emerging and frontier markets equity strategy at Tellimer Research.
Elsewhere, the South African rand ZAR= and the Turkish lira TRY= weakened slightly against the dollar.
For GRAPHIC on emerging market FX performance in 2023, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2023, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets nTOPEMRG
For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich
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