EMERGING MARKETS-Emerging stocks set for fifth week of gains

From Reuters - January 12, 2018

LONDON, Jan 12 (Reuters) - Emerging market stocks surged almost one percent on Friday and were set for a fifth straight week of gains after a mid-week spike in U.S. Treasury yields abated and oil prices held near 3-year highs.

MSCIs emerging equity index rose 0.8 percent back to recent 6-1/2 year highs after a strong showing in Asia where Hong Kong hit new 10-year highs and India surged to a new record.

Mainland Chinese stocks posted their 11th straight day of gains, shrugging off softer trade data.

In emerging Europe, Russian stocks hovered just off one-year peaks as Brent crude prices retreated from the $70-per-barrel mark .

Emerging currencies also broadly firmed against the dollar which pulled back against a basket of currencies, including Brazils real which shrugged off an S&P downgrade to the already junk rating.

The Turkish lira rose half a percent to the dollar while the Polish and Hungarian currencies surged almost one percent . The rouble and rand rose around 0.2 percent, the latter pressured by the ruling ANC partys decision this week not to launch proceedings against President Jacob Zuma .

JPMorgans ELMI Plus currency index closed Thursday near three-year highs hit last week, reversing mid-week falls.

Investors mostly remain persuaded the market has further to rise, with analysts at ING noting Thursdays soft U.S. inflation data and expectations of robust retail sales.


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