LONDON Oct 18 (Reuters) – Emerging stocks hit five-week
highs and emerging European currencies mainly rose on Thursday
as Chinese third-quarter growth reassured investors, and Turkish
stocks rose to their strongest in nearly two years ahead of an
expected rate cut.
China’s economy slowed for a seventh straight quarter in
July-September, but analysts see recovery ahead.
“The data was positive for risk appetite in that it provides
further evidence that the slowdown is finding a base,” said
analysts at Commerzbank in a client note.
Benchmark emerging equities rose 0.34 percent to
five-week highs. Russian stocks hit four-week highs,
with stocks of oil companies TNK-BP and Rosneft standing out as
negotiations on TNK’s future appeared to make progress.
Turkish stocks hit their highest since November
2010 ahead of a rate decision expected to result in a cut.
The central bank cut its overnight lending rate for the
first time in seven months in September and hinted it could do
more to try to cushion a slowdown in economic growth.
The forint hit seven-week highs, though stocks
fell from six-month highs set in the previous session,
reflecting broad positive sentiment despite ongoing concern
about prospects for reaching an aid deal with the IMF.
(Reporting by Carolyn Cohn; editing by Stephen Nisbet)
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