World Markets

EMERGING MARKETS-Stocks fall on trade worries, weak economic data

Credit: REUTERS/MARCOS BRINDICCI

Emerging-market shares fell on Thursday amid weak economic data from Japan and disappointing corporate results in the United States, the latest signs the U.S.-China trade conflict was unlikely to be resolved anytime soon.

By Agamoni Ghosh

July 18 (Reuters) - Emerging-market shares fell on Thursday amid weak economic data from Japan and disappointing corporate results in the United States, the latest signs the U.S.-China trade conflict was unlikely to be resolved anytime soon.

MSCI's index for emerging-market shares .MSCIEF slid 0.2%, led by declines for mainland China shares .SSEC.CSI300 led declines, and Hong Kong's Hang Seng .HSI dropped 0.6%.

Outside Asia, Moscow stocks .IMOEX fell 0.3%. Johannesburg .JTOPI trading was mostly flat.

Most developing-world currencies .MIEM00000CUS gained against a tepid dollar.

Growth worries have pushed central banks around the world to adopt a more dovish stance, following the U.S. Federal Reserve's lead, with the Bank of Korea going a step ahead and surprising with a rate cut on Thursday.

South Korea's won KRW= rose 0.2% after the Bank of Korea unexpectedly cut interest rates on Thursday. A brewing trade dispute with Japan may have put more pressure on the trade-dependent economy's central bank to move.

"The addition of the Japan-South Korea trade tensions into the mix was perhaps the final straw that tipped the BoK over into calling for a rate cut, against a market consensus of a 15/10 hold/cut," said Howie Lee, an economist at OCBC Bank.

Indonesia's central bank joined the doves, cutting its benchmark interest rate for the first time in nearly two years in a bid to lift sluggish economic growth. The rupiah IDR= was little changed.

The rand ZAR= was up 0.3% before a South African central bank meeting where officials were expected to cut rates by 25 basis points. .J

The Turkish lira TRY= was only 0.2% lower, an underwhelming response to the U.S. decision to remove Ankara from the F-35 fighter jet programme after it began taking delivery of a Russian missile defence system last week.

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 Agamoni Ghosh in Bengaluru)

((Agamoni.Ghosh@thomsonreuters.com; +918067491716; Reuters Messaging: Agamoni.Ghosh.thomsonreuters.com@reuters.net))

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

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More