CORRECTED- EMERGING MARKETS-China inflation subdues stocks, Fed in focus
(Corrects location of Brazil match para 16)
By Carolyn Cohn
LONDON, July 9 (Reuters) - Emerging stocks fell 0.4 percent to six-day lows on Wednesday after lower-than-expected inflation data pointed to weakness in China's economy, but expectations of continued low U.S. rates gave some support.
Chinese stocks dropped more than 1 percent after data showing CPI inflation at 2.3 percent in June, from 2.5 percent in May. Tech firms led losses following a tumble overnight in U.S. stock markets ahead of the earnings season.
Emerging market investors also looked to the minutes of the Federal Reserve's meeting, due later on Wednesday.
High-yielding emerging markets are benefiting from expectations a U.S. interest rate rise is still some way off.
"(Federal Reserve Chair Janet) Yellen seems committed to keeping forward guidance in such a way that it doesn't spook markets (and) that she can keep her dovish bent that's what's anchoring markets. We are still seeing strong inflows in emerging markets and we're being supported by forward guidance," said Ishitaa Sharma, emerging markets strategist at Citi.
The MSCI emerging equities index fell 0.4 percent, retreating from the previous session's 13-month highs.
China guided the yuan towards a three-month high against the dollar in what traders said was possibly a political move as China and the United States started their annual Strategic and Economic Dialogue. Continuación...