LONDON, July 30 (Reuters) - Emerging market equities hit a
3-1/2-high on Monday as investors began the week optimistic of
further stimulus from central banks, and the Romanian leu
rallied after the country's president survived an impeachment
attempt.
Emerging markets tracked global stocks, which rose to their
highest in more than three weeks, underpinned by hopes that the
U.S. Federal Reserve may do more to bolster economic recovery in
the United States and the European Central Bank could act to
lower surging Italian and Spanish borrowing costs.
The benchmark MSCI emerging stocks' index was up
0.6 percent.
Rising global risk appetite helped push Russian stocks
1 percent higher while Indian stocks rose 1.3
percent. Chinese stocks, however, fell 0.9 percent to
their lowest in more than three years as plans to simplify
delisting rules to deter speculators unnerved investors already
concerned about slowing growth in the world's No. 2 economy.
The Romanian leu hit two-week highs, and was
trading up 0.6 percent after President Traian Basescu survived
an impeachment vote on Sunday.
"The outcome of the referendum should ease the pressure as
the government said it would abide by the court's ruling."
Societe Generale told clients in a note.
"The leu should strengthen from recent lows after
yesterday's vote, but a significant and lasting recovery is
unlikely before the November parliamentary election."
The shekel held steady after recovering on Friday
from three-year lows. Monetary easing has weighed on the Israeli
currency and tensions in the Middle East have been high
following a bomb blast in Bulgaria targeting Israelis, which the
government had blamed on Iran.
(Reporting by Alistair Smout; Editing by Susan Fenton)
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