April 8 (Reuters) - Emerging-market shares were subdued on Monday after a rally last week as investors looked for more signs of progress in trade talks between the United States and China.
Currencies in the developing world were weaker even though the dollar sagged as bond yields extended their decline after a U.S. jobs report showed wage growth lost momentum.
MSCI’s index for emerging-market stocks was little changed, remaining at eight-month highs, as optimism on trade helped stocks rise for a seventh straight session on Friday, the index’s longest winning streak since January last year.
U.S. and Chinese negotiators wrapped up their latest round of trade talks on Friday and were scheduled to resume discussions next week to try end a tariff battle that has roiled global markets.
“Last week, we saw some pretty clear signs of reaction to news on the trade front and Chinese equities particularly sensitive to that rallied quite a bit,” said Oliver Jones, a markets economist at Capital Economics.
In Asia, Chinese mainland stocks returned from their Friday holiday to slip lower even as the central bank announced more stimulus measures. Hong Kong shares ended 0.3 percent higher.
South Korea’s KOSPI stock index ended flat as the Korean won fell to its weakest since September 2017.
Indian shares slid lower as investors awaited cues from quarterly results starting this week. Losses by oil shares overshadowed gains in power stocks.
Moscow’s MOEX index rose, led by gains in energy companies, as oil prices reached five-month highs.
Most emerging-market currencies slipped lower despite the dollar’s weakness.
Turkey’s lira shed over 1 percent. President Tayyip Erdogan’s losses in local elections have cast doubt on whether Turkey will adopt reforms to stabilise the economy, as Erdogan moves instead to shore up his political base.
South Africa’s rand retreated from a five-week best in the previous session. Stocks in Johannesburg rose 0.2 percent.
In emerging Europe, the Czech crown rose marginally against the euro after data showed February trade surpluses were higher than expected.
Argentina’s peso weakened to a record closing low on Friday. The central bank cut the interest rate payable on short-term notes.
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For RUSSIAN market report, see (Reporting by Agamoni Ghosh in Bengaluru, editing by Larry King)