* China, HK shares rise as tech, property stocks rally
* MSCI EMFX, shares index both drop 0.2%
* Russian rouble bucks gloom, up 0.5%
* BlackRock modestly overweight on Chinese equities
Sept 28 (Reuters) - More evidence of slowing growth in China
amid a power shortage and rising U.S. Treasury yields further
dented fragile risk sentiment on Tuesday, although a rally in
technology and property stocks kept heavyweight Chinese shares
Profit growth at China's industrial firms slowed for a sixth
month, data showed on Tuesday as plants fought off high
commodity prices, COVID-19 outbreaks and part shortages.
An unfolding power crisis in the world's second-largest
economy has piled onto investor worries over the fate of ailing
property developer Evergrande.
MSCI's index of EM currencies headed for its
worst session in three weeks, while stocks fell 0.2%
as heavy declines in the rest of Asia, South
Africa and Turkey outweighed gains in China
"It is still unclear ... (whether) China's power crunch is
easily 'fixable' or reversible, but in the meantime it generates
more concerns about the global supply chain," said Natalia
Gurushina, EM fixed income economist at VanEck.
Ratings agency S&P on Monday lowered annual 2021 GDP growth
forecast for the Asia Pacific region to 6.7% from 7.1%. For
broader EM, excluding India and China, S&P upgraded the forecast
to 4.8% from a prior 4.6%.
But liquidity injections by China's central bank and its
promises to protect consumers exposed to the housing market sent
domestic property stocks higher on Tuesday.
Shares of big tech names such as Alibaba, Tencent
and Meituan, which have seen steep slides
recently thanks to tightening regulations, also rallied.
BlackRock is dipping a toe into Chinese equities on stimulus
hopes, the asset manager said in a client note, adding it is
also modestly overweight on EM debt. nL8N2QU1PT]
While a dollar lifted by rising Treasury yields pressured
most EM currencies, Russia's rouble firmed 0.5% as oil
Analysts also point to parliamentary elections that showed
the ruling party retaining a majority, albeit reduced. "Policy
continuity is broadly foreseen on all fronts. The situation is
supportive of our forecast for the rouble exchange rate to
modestly appreciate over the coming quarter," Commerzbank
Turkey's lira was moving dangerously close to record
lows, while the South African rand stayed at one-month
lows, down about 0.6%.
In Tunisia, the dinar extended losses to a fourth
straight session as political crisis in the country, following
President Kais Saied's seizure of power, threatened to deepen
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
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Susan Mathew in Bengaluru; Editing by Giles
Elgood and Ramakrishnan M.)