*
China stocks rise on upbeat data, rate hopes
*
Russia's rouble slips against a subdued dollar
*
Turkish factory activity ekes out growth in January - PMI
*
Czech manufacturing contraction eases at start of 2023
-PMI
*
EM stocks rise 1.1%, currencies gain 0.2%
By Bansari Mayur Kamdar Feb 1 (Reuters) -
Emerging market stocks rallied on Wednesday on gains in
Chinese equities, while regional currencies edged up against a
softer dollar with investors cautious ahead of a much-awaited
interest rate decision by the U.S. Federal Reserve.
The MSCI's index for emerging market stocks rose 1.1% to 0901 GMT, snapping a three-day losing streak. Stocks in emerging market's largest economy, China, rose nearly 1% after a private sector survey showed factory activity shrank more slowly in January after Beijing lifted its tough COVID curbs late last year. In India, billionaire Gautam Adani lost his title of Asia's richest person as a rout in his conglomerate's stocks deepened to $82 billion after a short-seller report alleged improper use of offshore tax havens and flagged concerns about high debt. Indian shares, however, briefly rallied after the government raised the minimum tax rebate limit and stepped up spending in its full-year budget, before erasing gains soon after. "The initial move was some short covering as no change in the capital gains tax," said Andrew Holland, chief executive of Avendus Capital Alternate Strategies. "Now quickly back to the Fed." Currencies in emerging markets edged 0.2% up against a muted dollar ahead of the Fed decision, with investors pricing in a 25 basis points rise later in the day and betting on an end to the rate hikes soon. "A push-back against a pivot and rate-cut speculation could hit risk assets and lift the dollar today," said strategists at ING in a note.
The Polish zloty inched up against the euro, after
a survey showed the slump in its manufacturing sector continued
in January but rates of decline in production and new orders
softened.
Hungary's forint gained 0.4% even as data showed
its seasonally-adjusted Purchasing Managers' Index dropped to 55
in January from a revised 59.3 in December.
Czech manufacturing shrank at a slower rate in January but
output contracted for the eighth straight month, pushing the
crown 0.1% down.
The South African rand edged up to 17.38 against the
dollar, while the Turkish lira was subdued.
Factory activity in Turkey expanded in January after
shrinking for 10 straight months, a survey showed.
The Russian rouble eased to 70.07 against
the dollar amid reduced supply of foreign currency by exporters
and ahead of three government debt auctions.
Investors were also focused on a rate decision by Brazil
later in the day.
For GRAPHIC on emerging market FX performance in 2022, see For GRAPHIC on MSCI emerging index performance in 2022, 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
Arun Koyyur)
