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Turkish Lira hits record low, stocks rally 9.6%
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Polish inflation at 17.2% y/y in January, below forecast
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South Africa's January inflation slows to 6.9% y/y, as
forecast
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Stocks down 1.1%, FX down 0.4%
By Shubham Batra and Bansari Mayur Kamdar Feb 15 (Reuters) - Stocks in emerging markets fell on Wednesday after U.S. inflation data cemented fears of a more aggressive Federal Reserve, while the Turkish bourse jumped at the open after five days of closure and steep losses in the wake of devastating earthquakes. The MSCI's index of emerging market stocks fell 1.1% to its lowest level since Jan. 9 as markets digested data that showed American consumer prices accelerated in January although at a slower pace.
Hong Kong's Hang Seng index led China stocks lower, with geopolitical concerns and worries about China's economy weighing on investor sentiment. Regional currencies were down 0.4% at 0904 GMT as the dollar firmed. Turkey's Lira was down 0.2% against the dollar, hitting a record low, while Istanbul's bourse rallied 9.6% on resuming trade after five days of closure.
Trading was halted on Turkey's equity and derivatives markets last week in the wake of earthquakes that claimed more than 40,000 lives in Turkey and neighbouring Syria. "Turkish stocks have benefited from the intervention in the market we have seen from the government there, all designed to prevent a crash following the closure of the exchange a week ago," said Stuart Cole, head macro economist at Equiti Capital.
"So far the policy appears to have worked, judging by the performance at the open." South Africa's rand fell 0.6% after data showed headline consumer inflation slowed to 6.9% year on year in January from 7.2% in December, in line with estimates. Russia's rouble fell to 74.19 against the greenback on the possibility of fresh Western sanctions. The Polish zloty gained 0.4% against the euro, leading gains among central and eastern European peers, after data showed consumer prices inflation rose less than expected. The Hungarian forint gained 0.1% despite the economy slipping into a technical recession, as shown by quarterly growth figures on Tuesday. Romania's leu slipped 0.1%, with investors eyeing comments from central bank Governor Mugur Isarescu who is expected to present the quarterly inflation report later in the day and also release the inflation forecast for 2023 and 2024. Ghana's finance ministry on Tuesday said that around 85% of eligible bondholders had registered for its domestic debt exchange programme, bringing it one step closer to securing a $3 billion International Monetary Fund (IMF) bailout. (Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by David Holmes )
