* Moderna CEO warns COVID-19 jabs less effective against
* MSCI EM stocks index set for monthly decline of 4%
* Turkey's lira falls for third straight session
Nov 30 (Reuters) - Most emerging market currencies dipped on
Tuesday on doubts over how effective COVID-19 vaccines are
against the Omicron variant, while a gauge for stocks in the
developing world was set for its biggest monthly decline in two
U.S. drugmaker Moderna's chief, Stéphane Bancel,
warned that COVID-19 vaccines were unlikely to be as effective
against the Omicron variant of the coronavirus as they have been
against the Delta version.
The MSCI's index for emerging market stocks fell
0.4%, set for monthly declines of 4%.
"This is not really new news relative to the last 3-4 days
given what we know about the new mutation but the market is
picking up on the explicit comments," said Deutsche Bank
strategist Jim Reid.
"In reality, the evidence is still incredibly limited on
this question, and nothing from the Moderna CEO overnight
The warning comes a day after global financial markets
started the week on firm footing, with analysts pointing to the
new variant as a cause for central banks to rein in recent
tightening of monetary policy.
Currencies in Asia gave back early gains, while units in
Europe, Middle East and Africa were trading flat to lower by
0919 GMT. The drop in developing world currencies was also
contained by a weaker U.S. dollar.
South Africa's rand dipped 0.1%, while stocks in the
region logged the smallest declines among peers on higher gold
Russia's rouble fell 0.4%, with sliding oil prices to
blame. The Russian central bank said it will pursue monetary
policy that will bring inflation back to its 4% target by the
end of 2022.
LIRA TROUBLES LINGER
Turkey's lira fell in volatile trading for the third
day in a row, amid a very low interest rate environment. Turkish
President Tayyip Erdogan pledged on Monday to never defend
interest rate hikes nor compromise on the issue.
Erdogan's tough stance on keeping interest rates low and
influence over the country's central bank has pushed the lira to
all-time lows, with the currency losing over 42% this year.
"What has been more interesting over the past couple of days
is that the central bank and regulators have begun to intervene
in various ways, targeting market participants with short lira
positions," said Tatha Ghose, FX and EM analyst at Commerzbank.
"This shows that the authorities are not really comfortable
with lira depreciation no matter how much they say that they
want a weak lira."
Data showed Turkey's economy grew 7.4% year-on-year in the
third quarter, meeting expectations failing to ease concerns
about monetary policy.
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 Shreyashi Sanyal in Bengaluru, editing by Ed