June 9 (Reuters) - Emerging market stocks fell for a sixth
straight session on Wednesday, dragged down by tech heavyweights
in South Korea and Taiwan, while currencies nudged higher with
Poland's zloty nearing a six-month high ahead of a central bank
Mainland China shares ended the day higher after data showed
factory gate prices rose at their fastest annual pace in over 12
years in May.
But MSCI's index of EM shares fell 0.3% as stocks
in South Africa, Taiwan and South Korea
fell between 0.3% and 1%.
Focus is now on U.S. inflation data on Thursday to see if
the economic rebound in the U.S. economy is picking up at a pace
that could stoke inflation and prompt a change in the Federal
Reserve's easy monetary policy stance next week.
"While concerns about peak growth in the U.S. may have taken
some wind out of the market's sails, we think investors should
look at other offsetting tailwinds," said Mark Haefele, chief
investment officer at UBS Global Wealth Management.
"We expect the cyclical recovery momentum to persist in the
second half of the year, albeit with some bouts of volatility."
With U.S. 10-year treasury yields falling to their lowest
level and the dollar flat, most developing market currencies
were unchanged or ticked slightly higher.
South Africa's rand rose 0.3%. It fell 0.5% on
Tuesday after the GDP data showed the economy slowed in the
first quarter as expected.
Russia's rouble also gained 0.3% to a near 11-month
high ahead of an expected rate hike by the central bank on
Poland's central bank is expected to maintain status quo,
though markets are watching for more hawkish forward guidance
amid rising inflation. The zloty climbed 0.2% against
the euro, while other central and eastern European currencies
"Even in case of a symbolic rate hike, the real interest
rate will remain clearly in negative territory over the coming
quarters and will prevent a sustainable appreciation trend of
the zloty medium-term," said Commerzbank EM FX analyst Antje
In Latam, Peruvian socialist candidate Pedro Castillo held
on to a narrow lead late on Tuesday in the country's runoff to
its presidential election, as tensions rose over contested
ballots and accusations of fraud, sparking protests outside the
The sol held steady on Tuesday after hefty falls on
For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX
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For CENTRAL EUROPE market report, see
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For RUSSIAN market report, see
(Reporting by Susan Mathew in Bengaluru; Editing by Rashmi