LONDON, Aug 16 (Reuters) - Emerging shares inched lower on
Thursday, with weakness in Asia offset by an oil price-related
rise in Russia and gains in Turkish bank stocks ahead of a
monetary policy decision.
Emerging market currencies were mostly little changed, but
the Czech crown extended gains against the euro to a
3-month high, underpinned by a strong fiscal backdrop.
MSCI's main emerging markets stock index slipped 0.18
percent, weighed down by declines in China, where the
Commerce Ministry said the trade outlook for 2012 was worsening,
and in India.
The index is still up 6 percent on the year and near 3-month
highs, buoyed by expectations of more central bank stimulus.
Turkey's banking index jumped 1.2 percent in
morning trade, pushing Istanbul's main share index up
0.7 percent ahead of the central bank's August policy meeting,
with the lira flat.
The central bank is expected to respond to slowing domestic
growth and inflation by easing policy via an increase in the
amount of lira reserves that commercial lenders can hold in
foreign currencies and gold.
Russia, the biggest component in the emerging Europe
index, edged up 0.33 percent, helped by a spike
in oil prices to above $116 per barrel, while Polish stocks
gained 1.12 percent in thin trade, led by gains by No.
2 bank Pekao and refiner Lotos.
"Poland stands out in CEEMEA for its robust growth outlook,"
Societe Generale wrote in a research note.
Mainland Chinese markets were weaker, with alcohol producers
among the top drags on benchmark indices after leading industry
player Tsingtao Brewery posted first half
earnings below expectations. India's main BSE stock index
was down 0.44 percent.
(Reporting by Ingrid Melander; Additional reporting by Chris
Borowski in Warsaw; Editing by John Stonestreet)
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