Jan 9 (Reuters) –
Emerging market stocks hit five-month highs on Monday as the opening of China’s borders boosted investor sentiment. At the same time, volatile trading is expected in Brazil after major riots in the capital.
The MSCI stock index by 15:03 Moscow time rose by 2.4%, the MSCI emerging markets currency index – by 0.8%.
On the back of optimism about the recovery of the world’s second largest economy after the opening of borders, the Chinese yuan strengthened to almost a five-month high against the dollar, surpassing the key 6.8 mark.
The yuan on the mainland market rises by 0.83% to 6.7805, on the offshore market – by 0.53% to 6.7943.
The Korean won rises in price by 0.7% to 1.244.11 per dollar, the Indian rupee – by 0.1% to 82.34 per dollar.
The South African rand strengthened by 0.7% to 17.02 per dollar.
The Czech crown against the euro depreciates by 0.24% to 24.01.
The Hungarian forint against the euro is down 1.5% and the Polish zloty is down 0.19%.
The Romanian leu against the euro is growing by 0.08% to 4.92.
Along with growing hopes that the Fed will slow down the pace of monetary tightening, fears of a global recession have eased to some extent.
The index of Asian stock exchanges, excluding Japan, rose 2.4%.
Alibaba topped the list in Hong Kong, climbing 8.7% after reports that Ant Group subsidiary founder Jack Ma relinquished control of the fintech giant following a reorganization.
London-listed iShares MSCI Brazil UCITS ETF is down about 1.2%.
Supporters of former President Jair Bolsonaro stormed government buildings in protests, highlighting the strong polarization in the country following the inauguration of Luiz Inácio Lula da Silva, who won the October election.
“Markets (in Brazil) may open a little nervous today and we could see the Brazilian real drop against the dollar, rising bond yields and a correction in equities early in trading,” said Christian Maggio of TD Securities. “But that’s just because the market hasn’t had a chance to play it all back yet.”
Turkey’s central bank on Saturday raised its securities holding ratio to 10% from 5%, noting in a statement that banks as a whole have reached the target of 50% “lirization” of deposits announced for 2022.
The Turkish lira fell 0.1% to 18.78 per dollar, while the Turkish stock index shed 1.8%.
The original message in English is available at the code: (Susan Mathew and Bansari Mayur Kamdar in Bangalore, translated by Tomasz Kanik)