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EM growth slowdown bottomed out in 2022, but risks remain -IMF
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Adani's share sale 85% subscribed as institutions pump in
funds
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Czech economy slips into technical recession to end 2022
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China economic activity swings back to growth in Jan - PMI
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EM stocks off 1.4%, but on track for best Jan since 2019
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FX slips 0.3%. heads for third month of gains as dollar
weakens
By Bansari Mayur Kamdar Jan 31 (Reuters) - Stocks and currencies in emerging markets slid on Tuesday ahead of interest rate decisions by major global central banks this week, but both were on track for monthly gains with equities outpacing their currency counterparts. The MSCI's index for EM stocks fell 1.4% by 0903 GMT.
The index was still set to close January nearly 7.5% higher spurred by bets of a less hawkish Federal Reserve and hopes of economic recovery in China after the Beijing scraped its stringent COVID curbs. Emerging markets currencies slipped 0.3% as caution across financial markets in the lead up to Wednesday's Fed rate decision -- as well as Bank of England and European Central Bank rate decisions on Thursday -- boosted the greenback.
"It's important to highlight that there are divergences between major central banks and what markets are expecting," said Piotr Matys, senior FX analyst at In Touch Capital Markets. "At some stage, maybe markets are going to have a reality check and we're going to see another bigger fall in stocks." The International Monetary Fund on Monday raised its output growth estimate for emerging markets this year, with projections now showing the economic slowdown in the region may have bottomed out in 2022, on the back of China reopening, a resilient India and unexpected growth in Russia.
Also boosting sentiment, data showed China's economic activity swung back to growth in January. Nevertheless, stocks in China and Hong Kong fell as investors locked in gains after a strong rally that was fuelled by record monthly foreign inflows. South Korean shares ended 1% lower led by heavyweight chipmakers. In India, all eyes were on Adani Enterprises' and the last day for its crucial $2.5 billion secondary share sale, after stocks of the conglomerate took a beating following a U.S. short-seller's scathing attack last week. Among currencies, Russia's rouble hit a more than three-week low near 71 in early trading against the greenback, as it lost support from month-end taxes, when exporters convert foreign exchange revenue to pay local liabilities. Most central and eastern European currencies slipped against the euro, while the Czech crown inched up after data showed the Czech economy shrank by 0.3% in the fourth quarter versus the previous three months, beating analyst expectations. For GRAPHIC on emerging market FX performance in 2023, see For GRAPHIC on MSCI emerging index performance in 2023, see For TOP NEWS across emerging markets For CENTRAL EUROPE market report, see For TURKISH market report, see For RUSSIAN market report, see (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Christina Fincher)
@BansariKamdar;))