LONDON Oct 1 (Reuters) – Robust manufacturing data from
Russia pushed its stock market 1 percent higher on Monday,
bucking the generally weaker trend in emerging equity markets
while central European currencies firmed modestly as the euro
recovered from lows.
Weak purchasing managers surveys have underscored the
fragile state of the world economy, with manufacturing data from
China offering proof of a seventh straight quarter of slowing
growth, while euro zone PMIs showed the bloc has likely fallen
back into recession.
MSCI’s main emerging markets index eased 0.12
percent after gaining almost 7 percent in the July-September
period, recouping most of the losses from the second quarter.
Chinese and South Korean markets, which together make up a third
of the index, were closed for a holiday.
But Russian equities jumped despite slightly weaker
oil prices as PMIs showed the economy expanding at the fastest
pace in four months, suggesting resilience in the face of
slowing growth.
The rouble did not benefit however, trading flat to the
dollar.
The Czech crown and Polish zloty rose 0.2 percent against
the euro as the latter rose off three-week
lows hit earlier in the day. The crown has posted two weeks of
losses that took it to six-week lows after the central bank cut
interest rates and hinted at more steps to weaken the currency.
“Euro/dollar is rebounding so central European currencies
are also rising, overshadowing the fact that PMIs have been
disappointing everywhere,” said Thu Lan Nguyen, an emerging
markets strategist at Commerzbank in Frankfurt.
Poland is widely expected to initiate a rate cut cycle on
Wednesday but conflicting signals from the 10-member central
bank board are making markets uncertain, some analysts said.
“A rate cut could lead to near-term zloty weakness as it is
not yet full discounted by markets currently,” Credit Agricole
analysts told clients.
(Reporting by Sujata Rao; editing by Stephen Nisbet)
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