EMERGING MARKETS-Rouble falls on Ukraine, Dubai stocks bounce from 5-month low
By Carolyn Cohn
LONDON, July 1 (Reuters) - The rouble fell nearly 1 percent to its lowest in a week and Russian stocks dropped on Tuesday after a ceasefire ended in Ukraine, while Dubai stocks bounced from five-month lows as investors stepped in to buy cheaper stocks.
Central European markets came under pressure from weaker than expected manufacturing data.
Ukraine's president Petro Poroshenko said he would renew offensive operations against pro-Russian rebels in eastern Ukraine on Tuesday, following the end of a ceasefire.
"Where we go from here is really going to be dependent on (Russian President) Putin's reaction," said Ishitaa Sharma, emerging markets strategist at Citi.
"Obviously offshore (investors) are worried."
The rouble fell to its lowest in over a week and Russia's dollar-denominated stocks also fell nearly 1 percent to their lowest in nearly two weeks.
The MSCI emerging equities index was steady after posting a 4.75 percent gain in the first half, compared with a 5 percent gain in developed markets.
Frontier stocks, meanwhile, have soared 16.5 percent this year, as ultra-low yields in the developed world encouraged switches to higher-yielding assets. Continuación...