EMERGING MARKETS-Emerging from the ashes, stocks end the week higher
* Remarkable turnaround sees EM stocks end week higher * But worst month since 2012 after 9 percent fall * Ukraine consolidates gains after debt restructuring deal * Thai baht hits 6-1/2 year low, rouble up for first week in ten By Marc Jones LONDON, Aug 28 (Reuters) - Emerging markets stocks capped a turnaround from a calamitous China-driven start to the week on Friday with a second day of gains, though was not enough to save them from their worst month in three years. Investors were still on the hunt for bargains following the rout in Chinese and other key emerging economies that had sent global markets into panic on Monday. MSCI's benchmark EM stocks index was up just over 0.6 percent as a second straight 4-5 percent rebound in Shanghai and Beijing markets helped mask more lacklustre performances in eastern Europe and nudge it towards a 0.8 percent weekly rise. But it was still down 9 percent for the month, and momentum of the last few days for commodity producers like Russia had faded as oil cooled after its biggest jump since early 2009. Metals markets were also back in the red, which was expected to put markets like Chile back under pressure later. Nevertheless there was broad relief among EM investors that Monday's China-led drama and not spiralled out of control. "It is always an overreaction," said Marco Ruijer, an emerging market fund manager at NN Investment Partner. "Sentiment changes because a slight data point is a little bit better than expected as we saw with U.S. GDP, plus the interest rate and reserves cut in China. "And of course the oil price has shot up to close to $43 a barrel and that has helped our (bond) universe for the oil-exporting countries." Ukraine's markets also consolidated massive gains they had seen on Thursday after its government clinched a long-waited restructuring deal on its $18 billion debt pile. Its bond prices had jumped as much as 10 cents, roughly 15 percent, after what was widely seen as a generous deal by Kiev , and its default insurance costs fell to their lowest in 10 months in early trading on Friday. Currency markets were generally calmer than in recent days although there were some notable outliers. The Thai baht hit a near 6-1/2-year low as its central bank relaxed rules on overseas investments and said the currency reflects weaker economic fundamentals. (Full Story) But China's yuan jumped sharply as its central bank was spotted intervening, the Taiwan dollar and South Korean won both rose to their highest in roughly two weeks, while Russia's rouble was on track for its first weekly gain since June. Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg on year Morgan Stanley Emrg Mkt Indx 819.13 +6.05 +0.74 -14.34 Czech Rep 1013.92 +6.01 +0.60 +7.10 Poland 2121.01 +3.18 +0.15 -8.42 Hungary 21235.08 -276.07 -1.28 +27.66 Romania 7069.47 -13.15 -0.19 -0.19 Greece 627.48 +0.46 +0.07 -24.05 Russia 806.99 +2.13 +0.26 +2.06 South Africa 43929.50 +304.52 +0.70 -0.09 Turkey 74738.05 -75.43 -0.10 -12.81 China 3234.61 +151.02 +4.90 -0.00 India 26293.01 +61.82 +0.24 -4.39 Currencies Latest Prev Local Local close currency currency % change % change in 2015 Czech Rep 27.03 27.05 +0.08 +2.30 Poland 4.23 4.23 +0.04 +1.31 Hungary 314.47 314.41 -0.02 +0.64 Romania 4.43 4.44 +0.18 +1.22 Serbia 119.87 120.22 +0.29 +1.23 Russia 66.47 66.15 -0.47 -12.67 Kazakhstan 239.60 240.95 +0.56 -23.73 Ukraine 21.10 21.05 -0.25 -25.27 South Africa 13.17 13.13 -0.31 -12.21 Kenya 103.75 103.60 -0.14 -12.92 Israel 3.92 3.91 -0.22 -0.83 Turkey 2.92 2.91 -0.21 -19.95 China 6.39 6.40 +0.27 -2.85 India 66.13 65.96 -0.26 -4.69 Brazil 3.56 3.55 -0.24 -25.34 Mexico 16.91 16.88 -0.19 -12.80 Debt Index Strip Spd Chg %Rtn Index Sov'gn Debt EMBIG 441 3 .10 6 66.57 1 All data taken from Reuters at #N/A The record could not be found GMT. Currency percent change calculated from the daily U.S. close at 2130 GMT. For GRAPHIC on emerging market FX performance 2015, see link.reuters.com/jus35t For GRAPHIC on MSCI emerging index performance 2015, see link.reuters.com/weh36s For GRAPHIC on MSCI emerging Europe performance 2015, see link.reuters.com/jun28s For GRAPHIC on MSCI frontier index performance 2015, see link.reuters.com/zyh97s For CENTRAL EUROPE market report, see For TURKISH market report, see For RUSSIAN market report, see ) (Reporting by Marc Jones; editing by John Stonestreet)
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