EMERGING MARKETS-Risk-off mood sends Turkish lira to 5-month low, Chinese stocks slump

We'll see that again this week when they (the central bank) will likely hold rate at 14%." South Africa's rand slipped 0.1% against the dollar. The Russian rouble extended its gains against the dollar, strengthening past 57 for the first time in four years, boosted by export-focused companies selling foreign currency to pay taxes.

The Turkish lira hit a five-month low on Tuesday in a broad selloff of emerging market stocks and currencies as glum company earnings deepened worries about global economic growth.

Emerging market stocks fell 1.2%, in line with global peers, after a profit warning from Snap Inc dampened the relief rally of the last few trading days. Shares in both China and Hong Kong were more than 2% lower amid heavy selling by foreign investors on worries that new COVID-19 curbs in Beijing would further slow growth in the world's second-largest economy.

Turkey's lira slid beyond 16 against the dollar, bringing its losses for the year to 18%, as investors increasingly questioned the sustainability of economic policies ahead of a monetary policy meeting later this week. "At the moment, it's almost a one-directional bet for the lira, but the risks of more excessive and more extreme central bank adjustments to combat it are increasing as the currency weakens," said Simon Harvey, head of FX Analysis at Monex.

"What we are not seeing is the traditional rising of interest rates. We'll see that again this week when they (the central bank) will likely hold the rate at 14%." South Africa's rand slipped 0.1% against the dollar.

The Russian rouble extended its gains against the dollar, strengthening past 57 for the first time in four years, boosted by export-focused companies selling foreign currency to pay taxes. Investors are focused on the release of global purchasing manager index surveys and comments by policymakers at the World Economic Forum after some flagged the risk of a worldwide recession at the annual Davos think-fest. For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX

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