By Karin Strohecker
LONDON, Oct 12 (Reuters) - A retreating dollar, solid
commodity prices and new record highs for world stocks helped
extend the rally in emerging markets on Thursday, with stocks
at new six-year highs and currencies firming almost across the
MSCI's emerging equity index, which has gained 30
percent since the start of 2017, sailed 0.5 percent higher to
its strongest level since August 2011 after Asian markets took a
cue from Wall Street's record close to hit a near 10-year high
The greenback hit a two-week low after the minutes of
the latest U.S. central bank meeting revealed policymakers'
concern over persistently low inflation and raised doubts about
an interest rate hike expected in December.
"The Fed minutes seem to have been taken as more dovish than
expected and that is positive for emerging markets," Crédit
Agricole's senior emerging market strategist Guillaume Tresca,
Currencies shrugged off the weakness they suffered in recent
weeks, with JPMorgan's ELMI Plus index, a proxy
for emerging currencies, on track for weekly gains after four
weeks of losses.
"We saw a good emerging markets sell-off over the last two
weeks, so there is a bit of a consolidation," Tresca added.
Adding to the chipper mood, copper prices touched
their strongest in four weeks, while oil -- a touch
softer on the day -- rose in the previous three sessions.
South Africa's rand gained 0.4 percent to its
strongest level in 13 days, and was on track for its best week
since July. Turkey's lira and Russia's rouble both
matched the gains.
Mexico's peso traded flat, however, with investors nervous
as the United States, Canada and Mexico kicked off the fourth
round of talks about the future of the North American Free Trade
Agreement (NAFTA)on Wednesday. The peso has firmed more than 10
percent this year.
U.S. President Donald Trump said he would be open to
bilateral trade deals with Canada and Mexico if NAFTA talks
between the three countries fall apart.
"There are only negative signs (from the NAFTA talks).
Discussions look difficult so it could cap the peso's
appreciation," said Tresca.
He added that a collapse of the talks would be negative but
the current environment of low interest rates and strong
sentiment towards emerging markets could soften the blow.
For GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml
For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see)
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 1122.58 +5.25 +0.47 +30.19
Czech Rep 1054.62 +0.25 +0.02 +14.43
Poland 2546.11 -5.67 -0.22 +30.71
Hungary 38545.42 +92.30 +0.24 +20.44
Romania 8004.79 -0.05 +0.03 +12.98
Greece 748.29 -0.32 -0.04 +16.26
Russia 1145.00 +1.68 +0.15 -0.64
South Africa 51269.97 -168.58 -0.33 +16.78
Turkey 05144.38 +1328.34 +1.28 +34.56
China 3387.65 -0.64 -0.02 +9.15
India 32034.70 +200.71 +0.63 +20.31
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 25.88 25.87 -0.02 +4.37
Poland 4.27 4.27 +0.01 +3.18
Hungary 309.19 308.99 -0.06 -0.12
Romania 4.59 4.58 -0.09 -1.13
Serbia 119.27 119.39 +0.10 +3.42
Russia 57.66 57.78 +0.20 +6.25
Kazakhstan 334.27 335.07 +0.24 -0.19
Ukraine 26.60 26.55 -0.19 +1.50
South Africa 13.47 13.52 +0.38 +1.96
Kenya 103.15 103.30 +0.15 -0.76
Israel 3.48 3.49 +0.09 +10.52
Turkey 3.64 3.65 +0.34 -2.98
China 6.58 6.59 +0.04 +5.44
India 65.07 65.15 +0.12 +4.42
Brazil 3.17 3.17 +0.03 +2.59
Mexico 18.70 18.70 -0.01 +10.78
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 305 0 .13 8 05.36 1
All data taken from Reuters at 09:06 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
(Reporting and graphic by Karin Strohecker, additional
reporting by Marc Jones; Editing by Catherine Evans)
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