LONDON Aug 15 (Reuters) – Emerging equities slipped 0.4
percent on Wednesday, weighed down by losses in China and
Russia, while Egyptian assets stayed near multi-week highs on
hopes of diminishing political risks.
Market sentiment is broadly supported by expectations the
world’s central banks will act to stem deepening economic
weakness, and that has helped emerging equities rally 5 percent
in the past month to three-month highs.
MSCI’s main emerging markets stock index is
hovering just off those levels, but Wednesday saw Shanghai
shares sink 1.1 percent to approach recent 3-1/2-year
lows as lacklustre economic data has heightened trepidation over
Chinese companies’ first half earnings.
Russia, the biggest component in the emerging Europe index
, lost 1.5 percent as easing political tensions
over Iran pushed oil prices lower.
Egyptian stocks stayed near 4-1/2-month highs. They eased
0.2 percent after three straight sessions of gains
after the president moved to sideline the military, raising
hopes of a peaceful transition to full-fledged civilian rule.
The Egyptian pound traded at a fresh two-week high
against the dollar.
Central European trading was quiet with Polish and Romanian
markets on holiday, but Czech bonds were bid higher and the
Czech crown rose 0.12 percent versus the euro
.
A 1015 GMT Czech auction is expected to draw strong demand
as data showing the economy sliding deeper into recession has
raised expectations of interest rate cuts.
(Reporting by Sujata Rao; Editing by Hugh Lawson)
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