LONDON Oct 11 (Reuters) – Turkish stocks hit 17-month highs
on Thursday, shrugging off an escalating conflict with Syria as
data showed an improving current account picture while the Czech
crown lost 0.3 percent after comments by the central bank
governor.
South African assets gained as more truckers returned to
work after weeks of strikes.
Turkish stocks jumped, the lira gained 0.3
percent and bond yields slipped 20 basis points after
data showed the current account deficit narrowing significantly,
stoking expectations of a rating upgrade..
“The ratings agencies have argued that an upgrade depends on
evidence of an improving (current account deficit) position –
well now it’s improving,” said Timothy Ash, head of emerging
markets research at Standard Bank.
The Czech crown fell 0.25 percent after central
bank governor Miroslav Singer was quoted as saying the bank is
ready to intervene to weaken the currency if it feels there is a
risk of long-term deflation pressure.
The comments come a day after dovish remarks from Poland’s
prime minister and central bankers hit the zloty.
“We are seeing more and more verbal intervention. What’s
interesting is that you have more emerging currencies getting
polluted by these kinds of comments,” said Guillaume Salomon,
emerging market strategist at Societe Generale, citing the
zloty, rand and the crown as examples.
South African stocks rose a quarter of a percent
and the rand jumped 1.15 percent to the dollar, lifting
it to a three-day high as hopes grew that the strikes could soon
end.
The rand hit a 3-1/2 year low hit earlier this week on fears
the labour unrest would seriously derail growth and investment.
Broader emerging markets were flat weighed down by
a 0.8 percent loss in China and continued worries over
Spain which was downgraded by SP to BBB-, a notch above junk.
(Reporting by Shadia Nasralla; editing by Patrick Graham)
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