EMStocks Slip; Polish Zloty Gains ahead of CB Decision


June 9 Reuters Emerging market stocks fell for a sixth straight session on Wednesday, dragged down by tech heavyweights in South Korea and Taiwan, while currencies nudged higher with Polands zloty nearing a sixmonth high ahead of a central bank decision.

Mainland China shares ended the day higher after data showed factory gate prices rose at their fastest annual pace in over 12 years in May.

But MSCIs index of EM shares fell 0.3 as stocks in South Africa, Taiwan and South Korea fell between 0.3 and 1.

Focus is now on U.S. inflation data on Thursday to see if the economic rebound in the U.S. economy is picking up at a pace that could stoke inflation and prompt a change in the Federal Reserves easy monetary policy stance next week.

While concerns about peak growth in the U.S. may have taken some wind out of the markets sails, we think investors should look at other offsetting tailwinds, said Mark Haefele, chief investment officer at UBS Global Wealth Management.

We expect the cyclical recovery momentum to persist in the second half of the year, albeit with some bouts of volatility.

With U.S. 10year treasury yields falling to their lowest level and the dollar flat, most developing market currencies were unchanged or ticked slightly higher.

South Africas rand rose 0.3. It fell 0.5 on Tuesday after the GDP data showed the economy slowed in the first quarter as expected.

Russias rouble also gained 0.3 to a near 11month high ahead of an expected rate hike by the…


Please enter your comment!
Please enter your name here