* China c.bank to stay prudent; yuan rises * Evergrande bonds continue fall * Zloty flat ahead of cenbank meeting * MSCI relegates Pakistan stocks to frontier markets status * El Salvador bonds fall overnight amid chaotic bitcoin launch Sept 8 (Reuters) - A broad index of emerging market shares and currencies fell on growth worries spurred by recent dismal data from China and the United States, while the yuan firmed on China’s central bank officials pledging to maintain a prudent stance on monetary policy. The MSCI EM stock index lost 0.5% on Wednesday, its most in two weeks, while its currencies counterpart fell 0.2%, the steepest in three weeks. Weak jobs growth in the United States and dismal PMI data from China have weighed on risk sentiment recently. The yuan inched up against the dollar after officials at the People’s Bank of China said they would not resort to flood-like stimulus and that there is no shortfall in base money. China blue-chips and Hong Kong shares fell around 0.4% each, setting the tone for the rest of Asia . Bonds of indebted property developer China Evergrande fell further on Wednesday, taking yearly losses to more than 45%, after ratings agency Fitch downgraded them a notch closer to ‘very high’ levels of credit risk. Investor worries have grown over Evergrande’s ability to restructure its huge debts, which regulators have warned could spark broader risks to China’s financial system. South Africa’s economy grew a better-than-expected 1.2% in the second quarter, data showed on Tuesday. The rand hit one-month highs in the previous session but retreated from those levels on a stronger dollar. It inched up slightly on Wednesday. “The overall economic outlook (for South Africa) remains below pre-crisis levels. When looking at individual sectors, it becomes clear that recovery progresses at very different speeds,” said Elisabeth Andreae, FX and EM analyst at Commerzbank. “Momentum is only going to rise in 2022 on a temporary basis, but longer-term growth prospects are muted.” The Polish zloty was a tad lower ahead of a monetary policy meeting on Wednesday. A Reuters poll suggests the main rate will stay unchanged, although there are high chances that interest rates will be lifted sooner than later. Polish Central Bank Governor Adam Glapinski is due to hold a press conference on Thursday at 1300 GMT. Overnight, El Salvador’s dollar bonds fell after the country’s historic adoption of bitcoin as legal tender was beset by an angry protest by mistrustful citizens, technological glitches and a dip in the cryptocurrency. Meanwhile, MSCI Inc said here its Pakistan equities indexes are being relegated to frontier markets status from emerging markets, effective November. Pakistan’s KSE 100 index was down 0.7% at over three-month lows. On the year, it is up 6%. For GRAPHIC on emerging market FX performance in 2021, see tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2021, see tmsnrt.rs/2OusNdX 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 Ramakrishnan M. Our Standards: The Thomson Reuters Trust Principles.
مشاركة :