LONDON Aug 6 (Reuters) – Emerging stocks hit their highest
in nearly three months and the zloty hit a one-year high on
Monday after stronger-than-expected U.S. jobs data in the
previous session buoyed previously-flagging risk sentiment.
The July non-farm payroll figures followed announcements
which had suggested that no monetary stimulus would be pursued
by the Federal Reserve in the near future and any ECB action to
quell the euro zone debt crisis was not imminent.
“Overall, the outcome of last week’s big events were rather
below expectations…The non-farm payroll number was strong,
however, which sent a reassuring signal for the health of the US
economy,” said Societe Generale analysts in a note.
“Going forward, it looks like risk sentiment is on a strong
footing, which suggests that EM high-beta assets may continue to
perform well in the near term.”
Benchmark emerging stocks rose 1.10 percent,
reaching their highest point since May 14. Since hitting
three-year lows six days ago, Chinese stocks have
recovered 2.77 percent, and were up 1.04 percent on the session.
The rising tide of risk sentiment lifted emerging markets
globally, with emerging European markets also doing well. Polish
stocks gained 1.35 percent, and the zloty hit
fresh one-year highs.
The Hungarian forint hit 11-month highs,
continuing to gain after the renewal of IMF engagement in the
country, and even the Romanian leu, which hit new lows on
continued political turmoil last week, gained 1.04 percent
against the euro.
The strong gains came after Romanian central bank governor
Mugur Isarescu urged the Balkan state’s leaders on Monday to
reduce political tension that has hit the leu, and reports that
the central bank had intervened to support the currency.
Lawmakers in Serbia adopted a law on Saturday stepping up
parliamentary control over the central bank, despite warnings
from the European Union and International Monetary Fund that the
legislation posed a threat to the bank’s independence.
Continued…
