Worries over China see emerging markets take a battering
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