LONDON Dec 18 Emerging stocks edged towards
eight-month highs on Tuesday, supported by gains in China and
hopes of a U.S. budget compromise, and Turkish stocks hit record
highs ahead of expected rate cuts.
Chinese stocks, the largest component of the MSCI
emerging stocks index, hit five-month highs led by gains in the
Shanghai stocks are down 1.5 percent on the year, however.
MSCI's emerging equity index gained 0.25 percent
on the day, with global sentiment helped by a narrowing of
differences over how to resolve the U.S. fiscal standoff.
. The index has risen 14 percent this year.
"I am bullish on emerging markets in the near term if we do
manage to clear out the global risks, especially in the United
States," said Benoit Anne, head of emerging markets research at
Turkish stocks hit record highs ahead of expected
cuts of at least 25 basis points in key Turkish rates on
Czech stocks hit 10-month highs and Polish stocks
hit their highest since August 2011, while Russian
stocks hit two-month highs.
The Hungarian forint hit five-month lows ahead of
an expected 25 basis point rate cut, after diving on Monday on
rumours, denied by the central bank, of a change to a key policy
The Romanian leu steadied near four-month highs
set in the previous session after President Traian Basescu
re-appointed leftist Victor Ponta as prime minister, giving his
arch rival a mandate to complete a new deal with the IMF.
The rand rose to its highest in 2-1/2 months, before
trimming gains, on relief at a lack of surprises from an African
National Congress internal leadership election.