February 6, 2018 / 5:05 PM / 2 years ago

Emerging stocks modestly outperform in sell-off, Brazil, South Africa outliers

LONDON (Reuters) - Emerging equities have held up slightly better than their developed counterparts in a broad shake-out that began on Wall Street and has reverberated around the globe, though none have escaped the downdraft.

Global equities have been in freefall since data on Feb. 2 showed the biggest U.S. wage growth since 2009, fuelling expectations of faster rate hikes to combat inflation.

But MSCI’s benchmark emerging stocks index has lost around 3 percent since the close of play on Feb. 1, slightly outperforming its developed markets counterpart, which has fallen around 4.6 percent.

In a cross-asset table of winners and losers since close of play on Feb. 1, Shanghai A-shares are the best performers, up 1.2 percent.

(To view a graphic on global sell off since Feb. 1, click reut.rs/2BHkKYS)

Among emerging equities, the least badly-affected in this period were Indonesian stocks which have lost 0.6 percent in dollar terms, supported by encouraging economic growth. Saudi Arabia and Malaysia are down around 1 percent.

Brazilian and South African equities were the worst hit, down 6.4 percent and 5.9 percent respectively - comparable to the S&P 500 which has lost just over 6 percent after suffering its worst one-day drop on Monday since August 2011.

(To view a graphic on EM assets and the global sell off, click reut.rs/2BejUSj)

Reporting by Claire Milhench and Marc Jones; Editing by Toby Davis

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