EMERGING MARKETS – Stocks extend rally, South African rand slips as markets eye data

* April CPI in South Africa stable; retail sales at 11:00 GMT

* Chinese stocks fall due to insufficient government stimulus

* The Turkish lira down for the 10th consecutive session

* Sri Lanka will be defaulted by rating agencies

By Anisha Sircar and Bansari Mayur Kamdar

May 18 (Reuters) – Emerging market stocks firmed for the fourth straight day on Wednesday, even as declines in China capped gains, while the South African rand slipped ahead of key economic data due later during the day.

The stock gauge rose 0.5% to its highest level in nearly two weeks and looked poised to recoup last week’s losses as fears over China’s COVID-19 lockdowns eased and that strong retail sales data in the United States bolstered sentiment.

Concerns about slowing growth and mounting inflationary pressures amid monetary tightening cycles in developed markets weighed heavily on assets in the region.

Meanwhile, the South African rand pared its losses to 0.3% after data showed consumer price inflation in Africa’s most industrialized nation stood at 5.9% year-on-year in April, unchanged from March and just within the central bank’s 3% to 6% target range.

March retail sales figures are due at 11:00 GMT, while a central bank monetary policy decision is due on Thursday, where analysts expect the first 50 basis point hike in the repo rate on top of that. six years old.

Elsewhere, the Turkish lira fell for the 10th straight session, trading at 15.9 to the dollar and taking its losses for the year to 17% as it heads towards December lows. The lira was the worst performing currency last year with a drop of 44%.

“The Turkish lira has been through boom and bust cycles for so long…my lira forecast for this quarter is 19 (per dollar),” said Cristian Maggio, head of emerging markets strategy. at TD Securities.

Of the traditional EMEA high yielders that investors view as fungible currencies in a currency portfolio, namely the rand, lira and Russian ruble, only the rand is currently stable and tradable for foreign investors, added Maggio.

Emerging market currencies edged up 0.1% against a falling dollar.

“There are three concerns driving emerging markets: the scale of U.S. rate hikes, the Chinese slowdown, and worries about war, inflation, and commodity prices…It’s a temporary rebound until next fall,” Maggio added.

Chinese stocks ended down 0.4% as investors feared government policies would not be able to revive the economy.

Elsewhere, Sri Lanka is expected to be put in default by rating agencies after the non-payment of coupons on two sovereign bonds amid an unprecedented economic crisis in the country’s history.

For 2022 Emerging Markets FX performance chart see http://tmsnrt.rs/2egbfVh For 2022 MSCI Emerging Market Index performance chart see https://tmsnrt.rs/2egbfVh

For TOP NEWS in emerging markets

For the CENTRAL EUROPE market report, see

For the TURKISH market report, see

For the RUSSIAN market report, see

(Reporting by Anisha Sircar in Bengaluru; editing by David Evans)

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