* Stocks hold steady at 12-wk high
* Rouble at 4-month high on strong oil prices
* Hungarian forint at 3-month peak despite surprise rate cut
By Alessandra Prentice
LONDON, Jan 25 (Reuters) – Emerging stocks danced near
three-month highs on Wednesday with the impasse over Greek debt
talks limiting gains while the Hungarian forint jumped to a
three-month peak although the central bank confounded market
expectations of a rate hike.
Russia’s rouble rose to its highest in over four
months against its dollar/euro basket, propelled by month-end
tax payments from exporters and strong oil prices.
Fresh evidence that Germany would avoid recession kept
sentiment buoyant, though the lack of a breakthrough in talks
between euro zone ministers and Greece’s private creditors
reined in gains.
“The momentum on emerging markets has generally been
stronger and the collapse of implied volatilities across all
asset classes suggests a more constructive risk environment,”
said Imran Ahmad, emerging market strategist at RBS.
“Most people are underinvested in emerging markets and Asia
and Latin America remain relatively immune to the euro zone
crisis.”
Continued…
