* Meituan slides after Tencent stake sale
* EM sentiment hit by China growth worries - analyst
* Hungary's forint, Romanian leu down over 1%
Aug 16 (Reuters) - A 9% slide in tech heavy-weight Meituan
weighed on emerging market shares on Tuesday, while Hungary's
forint and Romania's leu led declines among currencies on
The forint and leu fell 1% each against
a steady euro, while currencies of Poland and
the Czech Republic lost about 0.2% each.
Poland is approaching the end of its monetary policy
tightening cycle but there remains room for further increases to
interest rates, central banker Henryk Wnorowski said on Tuesday.
"CEE (currencies are) under pressure from growing concerns
about negative implications for the euro zone economy of a
slowdown in China," said Piotr Matys, senior FX analyst at
InTouch Capital Markets.
Markets globally had taken a hit on Monday after dismal
retail sales and factory activity data from China raised worries
about economic recovery in the world's second largest economy
and heightened fears about of a global recession.
China's central bank cut a key lending rate following the
data, pressuring the yuan. The currency extended declines
against the dollar on Tuesday to hit three-month lows, last down
"Sentiment remains negative after the PBoC spooked markets
by unexpectedly cutting interest rates which was interpreted by
investors as a signal that economic slowdown in China could be
far worse than they anticipated," Matys said.
Data showing dipping U.S. single-family homebuilders'
confidence and factory activity in New York also amplified
recession worries as it came after recent data that showed the
U.S. economy shrank for a second straight quarter.
TENCENT STAKE SALE HITS MEITUAN
While most bourses in the emerging market space rose on
Tuesday, Chinese blue-chips inched lower, while Hong
Kong's benchmark index dropped 1.1%.
Hong Kong tech stocks slumped 2.0% as Meituan
slumped 9.1% after sources said Tencent Holdings
plans to sell all or a bulk of its $24 billion stake
in the food delivery firm to placate domestic
A heavy-weight on the broader emerging markets stocks index,
Meituan's slide offset gains in most other stocks, leaving
MSCI's index of EM shares flat.
In Kenya, dollar-denominated bonds
recovered slightly after falling as much as
2.9 cents on the dollar on Monday after the country's elections
chief declared Deputy President William Ruto the winner of a
tight presidential race which was disputed by a number of the
country's top election officials.
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 Susan Mathew in Bengaluru; editing by David