Hungarian forint down with EU funds in focus
EM stocks up 1.3%, FX adds 0.3%
Dollar heads for biggest monthly loss since 2010
Turkey's economy grew 3.9% in cooler Q3
Nov 30 (Reuters) - Emerging market stocks were set to
post the best month since May 2009, while currencies were on
track to snap a five-month losing streak as the dollar weakened
in November amid bets the U.S. Federal Reserve would pivot from
aggressive rate hikes.
The MSCI's index for emerging market stocks gained
1.3% on Wednesday, while currencies added 0.3%
against a tepid dollar.
Emerging markets have been sensitive to the U.S. rate
outlook this year, as Fed's aggressive monetary tightening has
buoyed the dollar so far, putting pressure on regional
"Developed markets sucked a lot of capital back in on higher
(Fed) rates and all of a sudden you're starting to see that
backdrop stabilize even though growth conditions are fairly
weak," said Simon Harvey, senior FX analyst at Monex Europe.
Supporting emerging market currencies in November, the U.S.
dollar index was poised for its biggest one-month drop
since June 2010 as investors have upped their bets that
inflation has peaked and the Fed will soon signal a shift in its
Investors looked to Fed Chair Jerome Powell's speech due
later in the day for more clues on monetary policy stance of the
world's largest economy.
China's blue-chip CSI 300 Index edged 0.1% higher
on Wednesday. The index has gained 9.8% so far this month on
rising hopes of easing COVID-19 measures in the world's
second-largest economy and policy support for its beleaguered
In central and eastern Europe, the Hungarian forint
fell against the euro as investors eyed an
announcement from the European Commission due around 1100 GMT on
EU funds earmarked for Hungary.
The European Commission is likely to approve Hungary's
post-pandemic recovery plan to keep open the possibility of EU
disbursements later, but hold back any payouts until Budapest
fulfils all agreed conditions, sources have said.
The Polish zloty edged higher after flash
inflation data for November came in lower than expected.
The South African rand rose 0.4% against a weaker
Data showed Turkey's economy grew 3.9% annually in the third
quarter, slightly less than expected, as high inflation and a
global slowdown weighed on domestic and foreign demand. The lira
was subdued against the greenback.
The Russian rouble edged up against the
dollar, tracking higher oil prices, ahead of three government
OFZ treasury bond auctions.
For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by