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Home / Market / Stock-market-news /  Emerging stocks drop from 14-month high on US payrolls report

London: Emerging-market stocks fell from a 14-month high after the US jobless rate slid to an almost six-year low, bolstering the case for the Federal Reserve to rein in stimulus measures. South Africa’s rand led currencies lower.

The MSCI Emerging Markets Index lost 0.2% to 1,058.78 by 2:42 pm in London, after closing Wednesday at its highest since 9 May 2013. The rand weakened 0.5% against the dollar. US employers added more workers than forecast in June and the unemployment rate dropped to 6.1%, labour department figures showed.

The growth in payroll employment was stronger than expected, Michael Wang, an emerging-market strategist in London at Amiya Capital LLP, said by e-mail. As a result, the US dollar has strengthened against EM currencies which is dragging down EM equities.

The iShares Emerging Markets exchange-traded fund fell for the first time in three days, dropping 0.1%.

The WIG30 Index in Warsaw slumped 1%, falling for a third day. PGE SA, Poland’s largest power utility, slid to the lowest level since 12 May, extending Wednesday’s 6.6% drop, after the nation completed the sale of a stake for 1.32 billion zloty ($434 million).

Turkey slips

The Borsa Istanbul 100 Index dropped less than 0.1%, declining for a third day, and the lira weakened 0.3% versus the dollar. Consumer prices climbed at an annualized 9.16% in June from 9.66% a month earlier, the state statistics bureau said on Thursday. That compares with a median estimate of 8.8% in a Bloomberg survey of 16 economists.

The Dubai Financial Market General Index increased 0.2%, taking its three-day advance to 12%. Arabtec Holding Co. jumped 6.3% after its second-biggest shareholder, Aabar Investments PJSC, said it may increase its stake in the company that helped build the tallest tower in the world.

Egypt’s EGX 30 Index added 1.4%, the biggest gainer among Africa and Middle East markets.

The Shanghai Composite Index added 0.2% to a two- week high, rising for a fourth day, while the Hang Seng China Enterprises Index climbed 0.1%. Anhui Conch gained the most in three months in Hong Kong.

Philippine gains

The HSBC-Markit index of China’s services industry rose to 53.1 in June, the highest since March 2013, a report showed. Readings of more than 50 indicate expansion. Separate data showed the official non-manufacturing gauge slid to 55 in June from 55.5 the month before.

The Philippine Stock Exchange Index gained 0.7%, while Taiwan’s Taiex Index rose 0.4%. BLOOMBERG

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