EMERGING MARKETS-Stocks on longest losing streak since Sept, rand rocked again

EMERGING MARKETS-Stocks on longest losing streak since Sept, rand rocked again
From Reuters - November 13, 2017

* EM stocks fall for third session despite China, CEE gains

* Rand hits one-year low as talk of Treasury resignation swirls

* Trump warns of trade imbalance in Asia

* Venezuela to meet debt holders, participation uncertain

By Marc Jones

LONDON, Nov 13 (Reuters) - Emerging markets began the week on the back foot after a barely disguised broadside at China from Donald Trump reawakened worries about trade wars and as crisis-hit Venezuela prepared for a meeting with its creditors.

MSCIs widely-tracked emerging market stocks index fell for a third straight session for the first time since September and many of the big regional currencies also struggled as the dollar made ground.

The standout was South Africas rand though as speculation that one of its top Treasury officials was set to quit the government sent it to its lowest level in a year and pushed bond markets down too.

Lebanons dollar bonds rebounded meanwhile after Prime Minister Saad al-Hariri said he would return to the country soon and could rescind his resignation if Shiite group Hezbollah agreed to stay out of regional conflicts.

The bonds have sold off heavily over the last week on belief Hariri had been coerced by Saudi Arabia into resigning. The resignation and its aftermath thrust Lebanon back to the forefront of the conflict between Sunni Muslim Saudi Arabia and Shiite Muslim Iran.

The 2024 bond rose 2.4 cents while issues maturing 2027, 2028 and 2032 rose as much as 1.6 cents ,,, Reuters data showed.

Theres been a slight easing in concerns that a proxy conflict will erupt between Iran and Saudi Arabia, said Jason Tuvey, an economist at Capital Economics.

But with (Prince Mohammed bin Salman) taking an increasingly aggressive stance, markets have built in an additional risk premium into the regional volatile markets.

There were few other new developments over the weekend in the Middle East after last weeks purge of fellow royals and officials by Saudi Arabias Crown Price.

The Saudi stock index fell as much as 1.5 percent during Sunday but closed only 0.3 percent lower after state-linked funds once again bought stocks in late trade, a deliberate operation to support the market and prevent a crash, asset managers said.

The index was down about 0.5 percent again early on Monday.



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