EMERGING MARKETS-China worries hit shares, Ukraine's debt insurance costs fall
By Carolyn Cohn
LONDON Feb 24 (Reuters) - Emerging stocks fell on Monday as Chinese shares posted their biggest loss in seven weeks on worries about the property market, while Ukraine's debt insurance costs dropped sharply on expectations of western aid.
Ukraine said on Monday it needed $35 billion in foreign assistance over the next two years and appealed for urgent aid after President Viktor Yanukovich was forced out of office at the weekend.
In China, stocks slid around 2 percent after news reports stoked fears that banks have begun tightening loans to developers before next week's annual parliamentary meetings.
That fuelled worries about a slowdown in China's property market and growth outlook.
"People are having a more negative view about China's economy now than at the start of the year and it's still playing out," said Peter Attard Montalto, emerging markets economist at Nomura.
The MSCI emerging equities index fell 0.34 percent though emerging sovereign debt spreads edged in by 1 basis point to 362 basis points over U.S. Treasuries.
Ukraine's five-year credit default swaps (CDS) fell 161 basis points from Friday's close to a 3-week low of 946 bps, according to Markit.
"Political considerations in this instance override economic or financial ones and ... western aid is likely to be substantial enough to prevent a credit event from taking place in the short term," Goldman Sachs said in a client note, referring to the risk of default or restructuring. Continuación...