EMERGING MARKETS-Respite for shares, Brazil's real after torrid week

viernes 25 de septiembre de 2015 06:19 GYT

* Brazil's real stabilises after c.bank intervention vow
    * EM stocks index sees second biggest weekly fall of year
    * Pressure expected to return soon as Fed talks up rate
    * China stocks see small weekly fall by their standards

    By Marc Jones
    LONDON, Sept 25 (Reuters) - Alarm bells were ringing in
emerging markets on Friday as shares trudged to their second
worst week of the year and Brazil, Turkey and South Africa's
currencies were all near record lows.
    There was a consolation 0.7 percent rise on the day for
MSCI's benchmark EM index but there were few cheers
after a near 5 percent plunge this week which has taken its
losses since April to an eyewatering 27 percent.
    Brazil's real which has been battered particularly
hard this week by mounting political and economic, was steadier
after the country's central bank vowed to defend the currency
with every weapon it has.
    It had sparked a relief rally for South Africa's rand
, Mexico's peso and Turkey's lira which have
all hit all-time lows this week, but analysts suspected it would
only prove temporary. 
    Particularly as Federal Reserve Chair Janet Yellen had said
on Thursday the bank remained on track for its first interest
rate hike in almost a decade later this year, something likely
only to add to the EM world's woes..
    Malaysia's ringgit and Indonesia's rupiah both
fell to their lowest levels since the Asian financial crisis in
1998 in response, while the Singapore dollar stayed
around a six-year trough on disappointing August output data.
    "We have had a big emerging market sell-off this week
especially because of contagion from Brazil where the real was
in freefall before the intervention yesterday from the central
bank," said Bernd Berg at Societe Generale in London.    
    "You saw a relief rally from this intervention... But we
believe it is only going to be temporary because the situation
is very negative for many emerging markets with China concerns,
global concerns and uncertainty about the Fed."
    Slumping commodity prices, the threat of rising U.S.
interest rates, exacerbated in some cases by ugly national
politics, have whipped up a near perfect storm for emerging
markets this year.
    The latest investment fund flow data showed the near-three
month exodus from EM equities had extended and bond fund
outflows reached a ninth straight week, although both were now
more of a trickle than the gush of recent weeks. 
    China's shares fell 1.6 percent on Friday but it came after
a remarkably quiet week by their recent standards. 
    A 1.5 percent rise meant central and eastern European stocks
 were the day's best EM performers. However, for
the week they have been some of the worst having been slammed
over 5 percent by the crash in European car shares. 
    Volkswagen the company at the centre of a scandal over
emissions tests cheating makes a large number of cars and parts
in countries like Slovakia, the Czech Republic and Poland.
     Emerging Markets Prices from Reuters            
 Equities                  Latest    Net Chg  % Chg  % Chg      
                                                     on year    
 Morgan Stanley               
 Emrg Mkt Indx    791.68    +6.00   +0.76  -17.22     
 Czech Rep            957.50    +6.28   +0.66   +1.14     
 Poland           2103.32   +20.37   +0.98   -9.18     
 Hungary           20797.41  +186.65   +0.91  +25.03     
 Romania           7187.91   +66.85   +0.94   +1.48     
 Greece              673.69    +5.87   +0.88  -18.46     
 Russia             786.46   +17.08   +2.22   -0.54     
 South Africa   45015.19   -46.86   -0.10   +2.38     
 Turkey          74610.20  -383.51   -0.51  -12.96     
 China             3091.81   -50.88   -1.62   -4.42     
 India           25863.50   +40.51   +0.16   -5.95     
 Currencies              Latest    Prev    Local    Local       
                                   close   currency currency    
                                           % change % change    
                                                    in 2015     
 Czech Rep      27.19     27.25   +0.24    +1.72      
 Poland          4.21      4.22   +0.20    +1.68      
 Hungary       314.39    313.69   -0.22    +0.66      
 Romania         4.41      4.42   +0.18    +1.59      
 Serbia        119.80    119.88   +0.07    +1.29      
 Russia            65.68     66.13   +0.69   -11.62      
 Kazakhstan       270.00    268.85   -0.43   -32.31      
 Ukraine           21.60     21.29   -1.46   -27.00      
 South Africa      13.76     13.84   +0.57   -15.93      
 Kenya            105.00    105.40   +0.38   -13.95      
 Israel             3.94      3.91   -0.54    -1.15      
 Turkey             3.04      3.04   +0.09   -23.15      
 China              6.37      6.38   +0.13    -2.65      
 India             66.06     66.10   +0.06    -4.59      
 Brazil             3.93      3.94   +0.13   -32.41      
 Mexico            16.83     16.87   +0.23   -12.39      
 Debt                 Index   Strip Spd  Chg   %Rtn   Index     
 Sov'gn Debt  EMBIG   451        -8    .03  6 63.85 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 )