LONDON, Sept 3 (Reuters) – Emerging stocks rose half a
percent on Monday, helped by expectations of monetary easing in
the world’s largest economies, while the Hungarian forint
approached five-week lows following a rate cut last week.
Federal Reserve Chairman Ben Bernanke on Friday left the
door wide open to a further easing of monetary policy, saying
the stagnation in the U.S. labour market was a “grave concern,”
but he stopped short of providing a clear signal of imminent
action.
Emerging stocks have risen 1 percent from
four-week lows set on Friday before Bernanke’s speech, with U.S.
policy easing expectations generally boosting higher-yielding
markets.
U.S. markets are shut on Monday for the Labour Day holiday.
Chinese stocks rose 0.6 percent, helped by strength
in the property sector after weaker-than-expected economic data
spurred hopes that Beijing will act to stem the slowdown in the
world’s second-largest economy.
Markets are also looking ahead to a possible rate cut and
bond-buying plan from the European Central Bank on Thursday.
The forint fell 0.4 percent against the euro to
within sight of five-week lows after the central bank cut rates
by 25 basis points last week, with more cuts expected.
Hungarian five-year bond yields are at one-year
lows following the surprise cut, while Polish debt is
at one-month lows on increased rate cut expectations.
The zloty also approached five-week lows against
the euro.
(Reporting by Carolyn Cohn; Editing by Toby Chopra)
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