Left Menu
Development News Edition

Emerging market shares lifted over hopes of better trade negotiations

Devdiscourse News Desk | Updated: 15-05-2019 17:24 IST | Created: 15-05-2019 14:03 IST
Emerging market shares lifted over hopes of better trade negotiations
The blue-chip CSI300 and Shanghai composite indexes both closed up about 2%, while stock markets in Taiwan, South Korea, Russia and South Africa gained between 0.3% and 0.8%. Image Credit: PxHere

Hopes of more stimulus for China's slowing economy lifted emerging market stocks from a near-four-month low and steadied currencies on Wednesday, as officials made conciliatory noises about a destabilising trade conflict with the United States.

Emerging markets have seen large capital outflows since the launch of the latest round of tit-for-tat trade restrictions by Washington and Beijing earlier this month, knocking nearly 6% off the MSCI's developing world stock index. In fresh evidence of China's economy losing steam, data on Wednesday showed retail sales fell to a 16-year low in April and industrial output slowed more than expected.

Beijing, however, has rapidly responded to every threat to the stellar growth that has propped up the world economy for a decade, and hopes of new stimulus measures pushed China's main indexes higher. The blue-chip CSI300 and Shanghai composite indexes both closed up about 2%, while stock markets in Taiwan, South Korea, Russia and South Africa gained between 0.3% and 0.8%.

"The hard data (out of China) seem to point to a still fragile footing of the real economy. But one thing is clear: the Chinese authorities will take (or have already taken) actions to prevent an economic slump," Commerzbank analysts wrote in a note. "Market participants seem to mainly rest their hopes on continued negotiations between Washington and Beijing."

U.S. President Donald Trump spurred a bounce for Wall Street on Tuesday by saying he had a "very good" dialogue with China and insisting talks between the world's two largest economies had not collapsed. Most developing world currencies trod water against a broadly firmer dollar, although the Turkish lira was an outlier, down about half a per cent as officials set a 0.1% BSMV bank and insurance tax on some forex sales.

Turkey has been at the top of emerging investors' worry list for most of the past year due to political instability, spats with the United States and concerns over political interference at the central bank. Data from the Turkish Statistical Institute showed unemployment was steady at 14.7% - the highest in nearly a decade - in the January-March period. Turkish stocks also fell to about 0.8%.

The Indonesian rupiah weakened as much as 0.2% as Southeast Asia's largest economy posted its widest trade deficit in history in April. In Eastern Europe, the Czech crown edged up against the euro after government data showed the Czech economy expanded a touch faster than expected in the first quarter, rising by 0.5% on a quarterly basis.

The Polish zloty and the Romanian leu also firmed ahead of central bank meetings with interest rates expected to remain on hold. Another set of GDP data showed Romania's economy expanded 5% on the year in the first quarter, sharply above market expectations of 3.9%, while Poland's growth rate of 4.6% was slightly above the anticipated 4.5%.


TRENDING

OPINION / BLOG / INTERVIEW

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...

Videos

Latest News

'I can't breathe' protests spread across America after Minneapolis killing

Thousands of protesters stormed the perimeter of Barclays Center in New York as protests spread across the United States over the killing of George Floyd, a Minneapolis black man who died after being pinned by the neck under a white police ...

Civil unrest flares again after Minneapolis policeman charged with murdering George Floyd

The white former Minneapolis police officer shown in video footage using his knee to pin an unarmed black mans neck to the street was charged with murder on Friday in the mans death, an incident that has unleashed four nights of violent pro...

TSM's Fortnite team fines ZexRow for profane rant

Team SoloMid fined Anthony ZexRow Colandro one months salary on Friday in response to his profane rant after winning the Week 1 championship in the Ninja Battles Fortnite series a day earlier. ZexRow, 19, had joined Jonathan Calc Weber and ...

Encounter breaks out in J&K's Kulgam

An encounter broke out between the security forces and militants in Jammu and Kashmirs Kulgam district on Saturday, police saidA cordon and search operation was launched following information about the presence of militants in Wanpora area ...

Give Feedback