| LONDON, March 12
LONDON, March 12 Emerging stocks hit a one-month
low on Wednesday after fears about China's economy dragged down
copper and other commodities, while worries about western
sanctions on Russia weighed on the rouble, forcing the central
bank to intervene.
Shanghai shares hit their lowest in nearly eight weeks as
worries grew that economic data due on Thursday would confirm a
slowdown in the world's second-biggest economy.
Concerns also lingered about China's credit sector following
its first domestic bond default last week.
Shanghai copper fell by its 5 percent daily limit, while
London copper touched a 44-month low as investors grew worried
that tighter credit conditions would weigh on financing deals
that use the metal as collateral, which could lead to more
"There are concerns over the health of the Chinese economy,
with signs that export growth is slowing sharply," said Neil
Shearing, head of emerging market research at Capital Economics.
"And there are signs that the tensions over Crimea are
continuing and showing no signs of abating... All these issues
are from the emerging world, not to do with the Federal
The benchmark MSCI emerging equity index fell more than 1
percent. Emerging markets have been under pressure
since mid-2013 when the Fed first suggested it would scale back
the pace of monetary stimulus.
Selling snowballed this year as China's economic slowdown
and growing political turmoil in countries like Turkey and
Ukraine triggered capital flight, forcing many central banks to
raise interest rates to support their currencies.
Russian shares lost more than 1 percent as
investors grew worried that western sanctions on Russia over
Crimea could hit the country's already flagging economy.
Russia's foreign ministry said on Tuesday that Moscow plans
to respect the results of a March 16 referendum in Crimea that
is expected to back the region's reunification with Russia.
The rouble was steady to lower after the
central bank intervened to keep the currency inside the floating
The country's five-year credit default swap rate rose 11
basis points from Tuesday's close to 248 bps, the highest since
June 2012, according to Markit.
Russia's 2043 dollar bond fell 1.4 points to
94.255, the lowest since the bond was launched in September. The
bond has lost more than 6 percent this month alone.
South Africa's rand dropped more than 1 percent as
concerns about China outweighed improvements in the country's
own current account deficit, which narrowed more than expected
in the final quarter of 2013 as exports outpaced imports.
Hungary's forint fell 0.1 percent to 314.01 per euro
after Tuesday's weaker-than-expected inflation data
reinforced expectations the central bank would cut interest
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see )