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EMERGING MARKETS-Emerging market stocks pause ahead of c.bank meetings; FX mixed

Credit: REUTERS/ALY SONG

Emerging market stocks took a breather on Tuesday after four sessions of gains as investors stayed on the sidelines ahead of key central bank meetings this week, while China's weak factory-gate prices further curbed appetite for riskier assets.

By Medha Singh

Sept 10 (Reuters) - Emerging market stocks took a breather on Tuesday after four sessions of gains as investors stayed on the sidelines ahead of key central bank meetings this week, while China's weak factory-gate prices further curbed appetite for riskier assets.

MSCI's emerging market stocks index .MSCIEF moved marginally lower with indexes in Johannesburg .JTOPI and Moscow .IMOEX leading declines.

China's producer prices fell by the most in three years in August, reinforcing expectations Beijing will roll out more economic stimulus as its trade war with Washington intensifies.

"The markets are clinging to the hope that China will deliver further stimulus on the fiscal side which will benefit neighbouring countries," Jakob Christensen, chief analyst and head of EM research at Danske Bank, said.

Asian indexes also racked up losses with Taiwan .TWII and the Philippines .PSI shedding 0.4% each, while mainland China stocks CSI300, .SSEC ended softer but off their lows. .SS

South Korea's KOSPI .KS11 bucked the trend, closing 0.6% higher helped by shares of construction firms with exposure to North Korea as Pyongyang said it was willing to restart talks with the United States.

Indian markets remained shut for a public holiday.

Developing world currencies were mixed against a firmer dollar with investors banking on monetary stimulus from the European Central Bank at its policy review on Thursday. Central bank meetings in Turkey and Poland are also on investors' radar.

The trade-sensitive Chinese yuan CNY= and South Korean won KRW= moved 0.2% higher.

South Africa's rand ZAR= firmed 0.3% ahead of manufacturing data due at 1100 GMT that will give investors fresh clues about the health of the most industrialised African economy.

The Turkish lira TRY= fell 0.4%, extending losses from the previous session.

U.S. Treasury Secretary Steven Mnuchin had said on Monday the Trump administration was considering imposing sanctions on Ankara related to its purchase of Russia's S-400 air defence missile system.

In emerging Europe, the Hungarian forint EURHUF= moved 0.2% lower against the euro as its headline inflation and core inflation came in below market expectations.

"The economy has probably peaked and given the difficult external environment, notably the German economy which Hungary is rather dependant on, the inflation numbers support the dovish tone that we have seen from the central bank," Christensen said.

Other central European currencies, including the Czech crown EURCZK= and Polish zloty EURPLN=, were largely flat.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB

(Reporting by Medha Singh and Agamoni Ghosh in Bengaluru Editing by Jacqueline Wong)

((medha.singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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