* Stocks fall for third day in row on Greece, growth worries
* Russian stocks, rouble fall further; debt sale falters
* Hungarian forint near 5-week low on aid delay fears
By Sujata Rao
LONDON, March 7 (Reuters) – Emerging stocks fell for
the third straight session on Wednesday as tension grew over
Greece’s debt restructuring, while Russian assets also extended
losses as a sale of seven-year rouble bonds failed to garner
much investor interest.
MSCI’s benchmark emerging markets index hit a
five-week low, falling 0.4 percent by 1120 GMT. It has lost more
than 4 percent already this week, putting it on course for its
biggest weekly loss since then end of November.
While emerging currencies rose off the multi-week lows hit
on Tuesday, the mood remains fragile as investors who have
benefited from a stellar early 2012 rally are bracing for
turbulence by trimming risk from portfolios.
Greece has threatened to default on bonds that investors do
not agree to swap by a Thursday evening deadline.
Oil prices above $120 a barrel are also preying on
investors’ minds, especially after China cut its 2012 growth
forecast and signs emerged that Western economies may yet fall
into recession.
Continued…
