EMERGING MARKETS-Currencies weaken, stocks subdued in light holiday trading
MSCI's index for emerging market stocks was down 0.2 percent, led by losses in South Africa and India . China and South Korea were shut for the Lunar New Year holiday; Hong Kong shares rose on a half-trading day. India's rupee fell to eight-week lows as oil prices rose to 2019 highs on OPEC-led supply cuts and U.S. sanctions against Venezuela.
A central bank meeting later in the week was expected to leave Indian interest rates unchanged. Economists had predicted rates would start rising next quarter, but that changed after Governor Urjit Patel's sudden resignation from the Reserve Bank of India and his replacement by Shaktikanta Das. "This will be the first RBI meeting under Das, who being a former government official, will be cognisant of any political pressure to ease," Mitul Kotecha, senior emerging markets strategist at TD Securities, said in a note.
"While there is a non-insignificant risk of a rate cut under the new governor, we think it may be premature for RBI to ease at this time," he said. Turkey's lira slipped 0.2 percent after data showed annual inflation crept up to 20.35 percent in January. Poor weather drove food prices higher and kept up the pressure for tight monetary policy.
South Africa's rand slipped further away from six-month highs as investors took profits from the previous week's rally. Russia's rouble fell, under pressure from foreign currency purchases by the central bank, but the MOEX index in Moscow was among the few stock markets charting gains. Energy shares gained as oil prices rose.
In emerging Europe, Romania's leu slipped lower after data showed producer prices for December 2018 were lower than expected. For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see For TURKISH market report, see
For RUSSIAN market report, see (Reporting by Agamoni Ghosh in Bengaluru, editing by Larry King)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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