MARKET REPORT Emerging stocks gain

Emerging stocks rose to oneweek highs yesterday after US President Donald Trump criticised the Federal Reserve for raising interest rates, clobbering the dollar and US Treasury yields, while the lira and rouble continued to fall.

MSCI’s benchmark emerging equities index rose 1 per cent and was set for a third day of gains after Mr Trump said he was “not thrilled” with the Federal Reserve for raising rates under chairman Jerome Powell. The comments caused the dollar index to retreat 0.35 per cent to a near twoweek low, while US 10-year Treasury yields fell towards a six-week low.

That helped emerging stocks and some currencies make gains, although the Turkish lira and Russian rouble remained under pressure as investors eyed threats stemming from their deteriorating relations with the United States.

Chinese mainland shares jumped 1.8 per cent, South Korea 1 per cent and Indonesia 0.9 per cent, while in Europe, Turkish stocks rose 1.6 per cent and Polish shares 0.8 per cent.

The biggest currency gainers included South Africa’s rand, up 0.9 per cent, while China’s yuan firmed 0.2 per cent to a near two-week high despite Mr Trump’s comments that China was manipulating its currency to offset US tariffs.

New US tariffs on $16 billion of Chinese goods take effect at 4.01am GMT on Thursday, along with retaliatory tariffs from Beijing on an equal amount of US goods.