Wor­ries over China see emerg­ing mar­kets take a bat­ter­ing

Weekend Argus (Saturday Edition) - - OPINION -

LON­DON: Emerg­ing mar­ket as­sets ended the week on a sour note, with ma­jor stocks and cur­ren­cies chalk­ing up daily and weekly losses as do­mes­tic woes were com­pounded by new wor­ries over the health of the Chi­nese econ­omy.

MSCI’s broad­est emerg­ing mar­ket eq­uity in­dex fell 1.2 per­cent on the day and was on track for an al­most 2 per­cent weekly loss.

Chi­nese main­land stocks tum­bled more than 5 per­cent, their big­gest daily drop since the mid-year slump, on news that the reg­u­la­tor had widened its probe into bro­ker­ages.

Chi­nese shares had al­ready been frag­ile, faced with the prospect of a fresh batch of ini­tial pub­lic of­fer­ings next week and fall­ing in­dus­trial prof­its.

Cur­ren­cies fared lit­tle bet­ter, with Rus­sia’s rou­ble and South Africa’s rand trad­ing around 0.5 per­cent weaker against the dol­lar, while Tur­key’s lira slipped 0.2 per­cent. All are on track for weekly falls.

Turk­ish as­sets have been ham­mered this week over a stand-off be­tween Moscow and Ankara over the Turk­ish down­ing of a Rus­sian fighter plane.

Trad­ing was gen­er­ally thin, with sub­dued ac­tiv­ity in the US this week due to the Thanks­giv­ing hol­i­day. – Reuters

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