EM stocks rise on Chinese manufacturing boost; Indian rupee hits record low
EMERGING-MARKETS/:EMERGING MARKETS-EM stocks rise on Chinese manufacturing boost; Indian rupee hits record low
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EM stocks up 0.7%; currencies down 0.2%
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Trump warns BRICS nations against replacing US dollar
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India GDP at 5.4% vs 6.5% poll
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Chinese PMI rose 51.5 in Oct
By Pranav Kashyap
Dec 2 (Reuters) - A gauge of emerging market stocks rose on Monday, driven by positive manufacturing data from China and expectations of continued policy support from Beijing, while India's rupee hit a record low because of weaker-than-expected economic data.
As of 0932 GMT, the MSCI's index for emerging market stocks had risen by 0.7%, on track for its biggest percentage gain in over three weeks.
China's blue-chip CSI 300 climbed 0.8%, and the Shanghai Composite index jumped 1.1% after a private survey indicated that Chinese factory activity expanded at the fastest rate in five months in November.
"The PMIs suggest that the economy continued to regain momentum in November. Increased fiscal spending and the front-loading of shipments to the US should continue to support growth in the near-term," said Gabriel Ng, assistant economist at Capital Economics.
China's yuan fell by 0.5% against the dollar in offshore trading.
The Indian rupee declined to 84.72 per dollar, passing its previous all-time low of 84.61.
The Reserve Bank of India is likely to have intervened to prevent further depreciation. Recent data showed that India's economic growth slowed significantly in the third quarter, with GDP rising by 5.4% year-on-year for July-September, the slowest pace in seven quarters and below expectations of 6.5%.
A gauge of emerging market currencies dipped by 0.3%. U.S. President-elect Donald Trump demanded on Saturday that BRICS member countries commit to not creating a new currency or supporting another currency that would replace the United States dollar, or face 100% tariffs.
Investors are evaluating Trump's policies on trade, tariffs and immigration, considering whether they might spark a global trade war and increase U.S. inflation.
Additionally, expectations that the U.S. Federal Reserve will slow its monetary policy easing have supported the dollar, putting pressure on emerging market currencies.
Elsewhere, the Russian rouble was down about 1%, reversing early gains against the indicative exchange rate of the dollar. Data showed a marginal increase in the manufacturing sector in November.
The Turkish lira edged up by 0.4% following data indicating signs of recovery in manufacturing activity for November.
The Hungarian forint weakened 0.3% against the euro and was near a two-year-low after credit rating agency Moody's late on Friday revised Hungary's outlook to "negative" from "stable."
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(Reporting by Pranav Kashyap in Bengaluru, Editing by Timothy Heritage)
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First Published:2 Dec 2024, 03:40 PM IST
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