LONDON Dec 17 Emerging stocks eased further on
Monday from last week's eight-month highs, with Russian shares
leading losses in emerging Europe and helping to offset a
four-month high in China.
Most emerging European stocks fell, with Russia's
dollar-denominated index slipping 0.4 percent, pressured
by a dip in oil prices even as some mining and metals stocks
Chinese mainland shares - the largest component of
the broader emerging index - climbed nearly 0.5 percent to close
at their highest level since mid-August. The official Xinhua
news agency said on Sunday that China pledged to maintain steady
economic polices in 2013, encouraging investors.
MSCI's emerging markets index slipped 0.3 percent.
Hungary's forint weakened by 0.5 percent against
the euro to touch four-week lows, while the Turkish lira
fell 0.3 percent against the dollar before central bank meetings
in both countries on Tuesday that are expected to deliver rate
Turkish unemployment rose to average 9.1 percent in August
to October from 8.8 percent in July to September, data showed on
Monday, following recent weaker than expected gross domestic
"(Turkish) GDP data has made the central bank a bit more
dovish. They have to act to support economic growth and prevent
appreciation of the currency," said Murat Toprak, EMEA
strategist for HSBC. "For Hungary we are with the consensus
about a 25 bps cut, for Turkey we expect cuts for all the policy
rates of 25 bps."
Egyptian five-year credit default swaps rose 10 basis points
to 490 bps, according to Markit, trading around 3-1/2 month
highs, after President Mohamed Mursi won a 57 percent "yes" vote
for the constitution in a first round of a referendum at the
weekend, a margin that was less than his party had hoped for and
which is likely to embolden the opposition.