EM stocks, FX enjoy relief rally; Polish rate decision in focus



(Removes extraneous word in first paragraph)

* Chipmakers lift benchmark KOSPI

* 75 bps rate hike seen in Poland

* HUF slides despite deposit rate hike

By Sruthi Shankar

July 7 (Reuters) - Emerging market currencies enjoyed a respite from their recent sell-off as the dollar retreated on Thursday, while a rally in chipmakers and reports of economic stimulus in China lifted several regional stock markets.

The Korean won KRW= , the South African rand ZAR= and the Mexican peso MXN= all gained, having fallen over the past few days on worries of a global recession that sent investors scurrying toward the safe-haven dollar.

The dollar weakened slightly on Thursday as investors grappled with the possibility of a pause in interest rate hikes amid signs of an economic downturn and easing commodity prices.

The MSCI index of EM currencies .MIEM00000CUS edged up 0.1% after hitting a 20-month low earlier this week.

The Polish zloty EURPLN= slipped toward March lows versus the euro, trading down 0.1% at 4.8 ahead of a central bank decision where policymakers are expected to hike interest rates by 75 basis points to 6.75%.

"It's a good trade off to go for 75 basis point hike to address the situation around still elevated inflation but we've also seen a very weak PMI print," said Christian Wietoska, a strategist at Deutsche Bank.

"If they go for 50, the market would not buy it. They would continue to price in still more rate hikes. The only way they can deliver a 100 is by giving a relatively dovish message on the back of it."

Governor Adam Glapinski said in June that the National Bank of Poland (NBP) was nearing the end of its rate-hike cycle, but with inflation at a 25-year high many economists think significant further tightening will be needed.

Meanwhile, the Hungarian forint EURHUF= fell, unable to benefit from a 200-basis-point hike of the central bank's key one-week deposit rate.

The forint, the worst performing central European currency this year, touched a record low of 416.9 per euro on Wednesday as soaring European gas prices and slowing business activity fuelled concerns about a recession in the bloc.

"CEE currencies are under severe depreciation pressure. In the last few trading days, fears of potential Russian gas scarcity, against a background of high inflation and wide current account deficits, have triggered a sharp selloff in regional currencies," JPMorgan economist Jose Cerveira said in a note.

Elsewhere, Sri Lanka raised interest rates to 15.50%, the highest level in two decades, to head off runaway inflation, while Serbia raised its benchmark rate to 2.75% from 2.50 %. .

MSCI EM equities index .MSCIEF rose 1.0%, with wider European stock markets boosted by reports of economic stimulus in China.

Meanwhile, stocks in South Korea .KS11 and Taiwan .TWII gained 1.8% and 2.5%, respectively, as chipmakers rallied after the world's largest memory-chip and smartphone maker Samsung Electronics 005930.KS posted its highest second quarter profit in four years.

For GRAPHIC on emerging market FX performance in 2022, see Link For GRAPHIC on MSCI emerging index performance in 2022, see Link

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see



Inflation in emerging Europe Link



Reporting by Sruthi Shankar and Devik Jain in Bengaluru, Marc
Jones in London; Editing by Vinay Dwivedi

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.