Chinese mainland shares rose nearly 1 percent on Friday, enjoying their best week since November after MSCI's decision to include them in its benchmark index, whilst South Africa's rand firmed after parliament backed the central bank's independence.
China Shenzen-listed stocks, are up almost 3 percent for the week, after MSCI gave the green light for the inclusion of 222 China-listed stocks, paving the way for some $20 billion of inflows.
The market hit an 18-month high on Thursday in the wake of the decision.
But the yuan was set for its biggest weekly fall since early March, down 0.4 percent, hampered by higher corporate demand for dollars and weaker guidance from the central bank.
MSCI's emerging stocks index gained 0.2 percent and was set for its best weekly performance in a month, up 0.7 percent, with index heavyweight South Korea hovering near an all-time high.
"Emerging markets are being helped by the fact (U.S.) Treasuries are holding very well -- the 10 year was 2.60 percent in mid-March and it is now 2.16," said Regis Chatellier, sovereign credit analyst at Societe Generale.
"There is not much pressure from the Fed side so people are happy with that. Also the growth trend in emerging markets is positive."
Emerging equities have attracted $1.7 billion this week and emerging bonds $2.2 billion, according to JP Morgan. Cumulative year-to-date inflows now stand at $40.2 billion for equities and $62.5 billion for bonds.
The strong investor appetite has allowed Argentina to sell a century bond whilst Belarus, rated B-/Caa1, raised $1.4 billion, with a 10-year tranche at 7.625 percent
The average yield spread of emerging sovereign dollar bonds over U.S. Treasuries has fallen 26 basis points since the start of the year to 314 basis points, but Chatellier did not expect this to tighten much further.
"For them to get tighter we need to have commodities going stronger," he said.
The South African rand firmed 0.4 percent after parliament said it would launch a court challenge against an anti-graft watchdog's recommendation of constitutional changes to alter the central bank's mandate.
The rand is still down 0.8 percent for the week after the threat to the South African Reserve Bank's independence. But stocks rose 0.3 percent and look set to end the week up 1.3 percent.
Investors have also taken heart from a constitutional court ruling that parliament can hold a secret ballot in a no-confidence vote against President Jacob Zuma.
Russian stocks lost 0.2 percent, but were set to end the week up around 1.8 percent, rebounding after last week's 3.2 percent sell off.
Russian dollar-denominated stocks were still down 1.1 percent for the week, after touching their lowest level since November 2016. A low oil price is weighing on producers, with Brent futures set for their worst first-half decline in two decades.
But the rouble firmed 0.7 percent, helped by oil prices edging back above $45 a barrel.
Overnight Mexico's central bank raised interest rates by a quarter percentage point to 7 percent, as expected, but hinted this could be the last rise. The peso firmed 0.3 percent against the dollar after gaining around 0.7 percent on Thursday.
For GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see) Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg
on year
Morgan Stanley Emrg Mkt Indx 1011.26 +2.45 +0.24 +17.28
Czech Rep 986.58 -1.72 -0.17 +7.05
Poland 2306.20 -1.96 -0.08 +18.39
Hungary 35712.92 -66.35 -0.19 +11.59
Romania 8342.27 +5.42 +0.07 +17.74
Greece 813.41 -1.40 -0.17 +26.38
Russia 985.36 +6.91 +0.71 -14.49
South Africa 45101.29 +156.64 +0.35 +2.73
Turkey 00021.91 -50.23 -0.05 +28.01
China 3157.43 +9.98 +0.32 +1.73
India 31191.41 -99.33 -0.32 +17.14
Currencies Latest Prev Local Local
close currency currency
% change % change
in 2017
Czech Rep 26.27 26.29 +0.08 +2.80
Poland 4.23 4.23 +0.07 +4.10
Hungary 309.07 308.96 -0.04 -0.08
Romania 4.56 4.57 +0.29 -0.57
Serbia 121.44 121.59 +0.12 +1.57
Russia 59.48 59.95 +0.79 +2.99
Kazakhstan 326.01 327.86 +0.57 +2.34
Ukraine 26.03 26.02 -0.03 +3.73
South Africa 12.91 12.97 +0.47 +6.37
Kenya 103.52 103.41 -0.11 -1.11
Israel 3.54 3.55 +0.17 +8.80
Turkey 3.50 3.51 +0.09 +0.66
China 6.84 6.83 -0.12 +1.50
India 64.45 64.59 +0.22 +5.42
Brazil 3.34 3.34 +0.01 -2.63
Mexico 18.04 18.10 +0.32 +14.81
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 333 -1 .03 7 86.92 1
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}