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China stocks, yuan fall after weak CPI data
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South Africa's rand hits fresh three-year low
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Pakistan rupee slumps to record low amid protests
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EM stocks, FX down 0.2%
By Amruta Khandekar May 11 (Reuters) - Emerging market stocks fell for a third session on Thursday as gloomy data from China stoked concerns about deflation and the country's pace of recovery, while currencies were also subdued against a firm dollar. The MSCI's index for emerging market stocks was down 0.2% at 0827 GMT, while currencies in the region also logged similar declines.
Stocks in China slipped 0.2%, while the yuan hit its lowest level in two months against the dollar as data showed China's consumer prices rose at the slowest pace in more than two years in April, while factory gate deflation deepened. The dollar which had taken a hit after a U.S. inflation report on Wednesday raised bets of a rate hike pause by the Federal Reserve, found its footing following the release of the Chinese data, which provided further evidence of the country's weak post-pandemic recovery.
The South African rand was under renewed selling
pressure on Thursday, hitting a fresh three-year low against the
dollar as sentiment towards the currency was dented by the worst
power cuts on record.
"South Africa is moving into the colder winter months and
preparations are being made for an escalation of the
load-shedding schedule. This is having a dire effect on what is
already a fragile economy," said Shaun Murison, senior market
analyst at IG.
Pakistan's rupee slumped to new record low of 296 against
the greenback, amid deadly street protests sparked by the arrest
of former Prime Minister Imran Khan and of some senior leaders
of his party.
The Russian rouble was last at 75.45,
jumping to a seven-week high against the U.S. dollar in early
trading on Thursday.
The Hungarian forint and the Polish zloty slid from over one-year highs hit in the previous
session, down 0.4% and 0.3% respectively.
Czech inflation slowed further in April to its lowest since
March 2022, data showed on Thursday, possibly taking pressure
off the country's central bank to hike rates.
An International Monetary Fund (IMF) staff team is expected
to arrive in Sri Lanka on Thursday as the crisis-hit country
prepares for the first review of a loan programme in September.
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 Amruta Khandekar;
Editing by Bernadette Baum)
