LONDON (Reuters) – China’s $2 trillion equity rout may not be over yet but some foreign investors, far from fleeing a volatile market dominated by small-time traders, are swimming against the tide and buying more shares.
Some in this small band of optimists see historical parallels with Japan, where the stock market matured long after its export boom peaked. Others believe private Chinese investors will eventually return, seeking returns on their huge savings.
LONDON, July 29 (Reuters) – Emerging stocks snapped a
five-day run of losses on Wednesday, lifted by a Chinese market
bounce, but currencies were broadly weaker before a Fed meeting
that may set the stage for the first U.S. rate rise in nine
The dollar index is hovering just off two-week lows
before the meeting, at which attention will focus on whether
U.S. Federal Reserve chair Janet Yellen signals September or
December as the most likely date for the move.
LONDON, July 28 (Reuters) – While local Chinese fret over
the bursting of the Shanghai stock bubble, global investors are
more worried about the yuan currency which once seemed destined
to rise inexorably.
A decade after China released the yuan from its peg to the
dollar, ever more international money managers no longer regard
the currency as a one-way appreciation bet that will augment
their returns on stocks and bonds in dollar terms.
LONDON, July 24 (Reuters) – Offshore-traded yuan hit
two-week lows on Friday and volatility rose on weak Chinese data
and authorities’ plans to liberalise currency trading while
other emerging currencies plumbed new multi-month and multi-year
Shares worldwide skidded with the broader emerging MSCI
index down almost 1 percent as data showing Chinese
manufacturing at 15-month lows rekindled concerns for regional
exports and economic growth. Chinese mainland equities slipped
0.6 percent after a six-day run of gains .
LONDON, July 23 (Reuters) – Falling exports are piling
pressure on emerging economies, putting many of them at risk of
a multi-year cycle of sluggish trade, economic growth and
From Korean cars to Chilean copper, exports from emerging
markets are declining year-on-year at the sharpest rate since
the 2008-09 crisis, according to a report by UBS, while Asian
powerhouses such as Korea, Taiwan and Philippines have posted
five to six straight months of dwindling overseas sales.
LONDON, July 23 (Reuters) – Emerging currencies extended
falls on Thursday, with many in Asia at multi-year lows on the
back of U.S. rate hike bets while South Korea’s poor economic
data highlighted the developing world’s growth slowdown.
Emerging equities fell 0.4 percent to nearly a
two-week low, with the index now 3 percent down on the year.
LONDON, July 21 (Reuters) – The Czech crown retreated
further on Tuesday after the central bank’s warning intervention
around the key 27-per-euro mark, while most other emerging
market assets were flat to firmer after the previous day’s
The dollar index was flat at three-month highs. The MSCI
emerging equities index rose 0.4 percent, lifted by
gains on Western bourses and a 0.6 percent rise in China, where
the Shanghai and Shenzen indexes hit three-week highs
LONDON (Reuters) – The dollar jumped to three-month highs on Monday, extending its recent run of gains as expectations of a U.S. rate rise gathered pace, while gold prices plunged to their lowest in more than five years.
The greenback posted its best weekly performance in about two months last week, after Federal Reserve Chair Janet Yellen reiterated that U.S. interest rates will probably rise later in the year. Data on Friday showing a robust pick up in U.S. consumer prices and housing starts also helped the rally.
LONDON, July 15 (Reuters) – The Czech crown hit new 20-month
highs on Wednesday, heading to test the official 27-per-euro
exchange rate threshold, while other emerging markets from
Chinese shares to the Russian rouble were broadly weaker.
With Greece’s parliament set to vote on austerity measures
required to secure bailout funds, a fresh slide in Chinese
equities and an upcoming testimony by U.S. Federal Reserve chair
Janet Yellen, sentiment was subdued.
LONDON, July 14 (Reuters) – Russian hard currency reserves
posted their first quarterly increase since 2013 in the
March-June period, while Indian reserves hit record highs.
Russian reserves have fallen more than $110 billion since
last June due to authorities’ defence of the rouble in late
2014, but since May the central bank has been purchasing hard
currency, helping reserves rise to $362 billion by end-June,
the following graphic shows: link.reuters.com/huf76v