Stocks, currencies fall as China worries weigh



By Susan Mathew

Aug 15 (Reuters) - Most emerging market shares fell on Monday and currencies snapped a four-day rally, as weak economic data from China deepened worries about the world's second-largest economy.

With factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis, the economy unexpectedly slowing in July, data showed, prompting a rate cut by the country's central bank to stimulate demand.

The Chinese yuan CNY= dropped 0.3% against the dollar. Chinese blue-chips slipped 0.1% and Hong Kong shares .HSI fell 0.6%, pushing a China-heavy emerging market stocks index .MSCIEF down 0.3%.

The broader index had ended last week up 1.4% in its fourth straight week of gains.

"The (Chinese central bank) policy impact will depend on whether the government is able to mitigate the uncertainty associated with zero-COVID policy and Omicron outlook, whether prompt actions can be taken to address the housing market weakness, and an anticipated fiscal funding gap into 4Q," said analysts at JPMorgan.

ING analysts note that with U.S. activity strengthening into the third quarter, the dollar should stay supported, implying more pain for emerging market currencies .MIEM00000CUS .

"We think the dollar does not start to turn lower until 1Q23."

CREDIT RATINGS BITE

Several emerging markets were closed for local holidays on Monday, and moves in others were largely muted. Turkish stocks .XU100 edged up, while the beleaguered lira currency TRY= fell 0.2% against the dollar.

Ratings agency Moody's on Friday lowered Turkey's sovereign credit rating by one notch to "B3" from "B2", citing rising balance of payment pressures and risks of further declines in foreign-currency reserves.

S&P and Fitch, meanwhile, lowered Ukraine's foreign currency ratings, saying they consider the war-ravaged country's debt restructuring as distressed.

In Russia, several major Wall Street banks have begun offering to facilitate trades in Russian debt in recent days, according to bank documents seen by Reuters. This gives investors a chance to dispose of assets widely seen in the West as toxic due sanctions on Russia over its invasion of Ukraine.

Hungary's forint EURHUF= slumped 0.7% against the euro after S&P cut Hungary's credit rating outlook to negative from stable, citing risks to European Union funding and energy supply.

Investors this week will be looking out for economic growth data from central and eastern European economics, with Polish GDP seen contracting in the second quarter.

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
Reporting by Susan Mathew in Bengaluru; Editing by Rashmi Aich

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.