International Development News
Development News Edition

EMERGING MARKETS-Stocks steady on Fed hopes, HK slumps after emergency powers invoked

EMERGING MARKETS-Stocks steady on Fed hopes, HK slumps after emergency powers invoked
Image Credit:

Emerging market stocks steadied on Friday as bets of a rate cut from the U.S. Federal Reserve increased after weak data readings raised doubts about the health of the world's top economy, while Hong Kong stocks slumped after emergency powers were invoked. MSCI's EM index rose 0.1% but headed for its third straight week of decline after weak data from major economies including the United States intensified global slowdown fears.

Focus now turns to U.S. jobs data later on Friday, which could make the case for a Fed rate cut stronger if it turns out to be another disappointment after dire manufacturing and services data earlier this week. "The Fed will need to cut rates, whether some members want to or not is another story," said Stephen Innes, Asia Pacific market strategist at AxiTrader.

"Moreover, while this notion is buttressing risk assets like equities and oil, the current state of weak macro and relatively stable equity markets can't exist much longer." Tech stocks rose nearly 1% helped by Asian chipmakers after Apple raised its iPhone 11 production. But trading volumes were muted on account of a week-long holiday in mainland China.

Hong Kong shares fell 1% as the territory's government invoked colonial-era emergency powers for the first time in more than 50 years in a dramatic move intended to quell escalating violence in the Chinese-ruled city. Indian stocks reversed course to trade lower after the central bank cut interest rates for the fifth time this year as expected and also lowered its GDP growth forecast from 6.9% to 6.1%. The rupee barely budged.

"We expect further easing given the widening output gap and limited inflation pressures, though we think risks are skewed towards the next cut taking place in Q1 2020," said Mitul Kotecha, senior emerging markets strategist at TD Securities. Most developing currencies were on track to end the week lower, including the Russian rouble and Turkish lira , but South Korea's won was set to notch a 0.4% weekly gain.

Emerging European currencies fared better for the week, with Poland's zloty on track to end the week 1.4% higher, after a ruling on Swiss Franc mortgages by the European Union's top court gave banks plenty of time to absorb the potential compensation costs. For GRAPHIC on emerging market FX performance 2019, see For GRAPHIC on MSCI emerging index performance 2019.

Also Read: FMSCI rubbishes reports claiming inconsistency in Gaurav Gill's Arjuna application

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

With Ayodhya verdict, CJI starts clearing high profile pending cases

Ending all the speculations, the Chief Justice of India Mr. Ranjan Gogoi who is due to retire on November 17 decided to deliver the verdict in Ayodya dispute at 10.30 am on Saturday which is not a working day for the Supreme Court. This is ...

How partnerships and collaborations could enhance teacher training

Monica Malhotra Kandhari, Managing Director, MBD Group shares her views on public private partnership and collaborations in education sector. She supports her propositions with her organisations success stories....

Fixed Test centers would facelift level of WTC in India

The venues for the test matches in India should be fixed so that World Test Championship matches remain fair....


Latest News

Florida judge draws town's wrath over school violence case

Macclenny Florida, Nov 17 AP Residents in a rural northern Florida community are fuming over a judges recent decision to dismiss a case against a 15-year-old who shared a six-page School Shooting Plan with a classmate. Anxieties spread acro...

UPDATE 4-White House budget official testifies in impeachment probe on Saturday

A White House budget official testified on Saturday about the holdup of military aid to Ukraine in a closed door session of the U.S. House of Representatives impeachment inquiry of President Donald Trump, with public hearings set to resume ...

UPDATE 5-Paris police use tear gas, water cannon on 'yellow vest' protests anniversary

Demonstrators torched cars and pelted police with stones and bottles and police fired tear gas and water cannon in Paris on Saturday as rallies to mark the first anniversary of the anti-government yellow vest demonstrations erupted into vio...

Soccer-Kessie on the spot to seal Ivory Coast win over Niger

AC Milan midfielder Franck Kessie scored a second-half penalty as Ivory Coast laboured to a 1-0 victory over Niger in their opening 2021 Africa Cup of Nations Group K qualifier in Abidjan on Saturday. It was the second spot-kick of the game...

Give Feedback