LONDON Aug 9 (Reuters) – Emerging market stocks rose to
three-month highs on Thursday, buoyed by expectations of
monetary easing in China where data showed inflation at 30-month
lows.
China’s consumer price index rose 1.8 percent last month
compared with a 2.2 percent increase in June, far below a
three-year high of 6.5 percent last July.
Benchmark emerging stocks rose almost 1 percent,
posting their fifth straight session of gains, while Chinese
equities rose 0.6 percent.
Turkish and Polish markets rose almost 1
percent while Russia added 0.3 percent.
Emerging currencies were generally firmer, with the Serbian
dinar up 0.4 percent after three days of losses
against the euro. This follows government promises to slash the
country’s budget deficit and seek a new deal from the IMF.
The currency plunged to near-record lows this week after
Standard Poor’s cut Serbia’s credit rating amid an ongoing
central bank crisis.
The rouble firmed to 2-1/2 month highs against the dollar as
oil prices held over $112 a barrel.
The Hungarian forint firmed slightly as Budapest
saw strong demand at its bond auctions, with yields slipping
from the previous sale in July.
The Romanian leu, pressured recently by a political crisis,
was also modestly firmer as the Treasury prepared to
auction two-year bonds.
(Reporting by Alistair Smout; editing by Stephen Nisbet)
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