EMERGING MARKETS-China boosts emerging stocks, Russia steadies
By Carolyn Cohn
LONDON Aug 4 (Reuters) - Emerging stocks recovered from one-month lows on Monday, lifted by a rally in Chinese stocks to their highest this year, while Russian stocks stabilised above three-month lows.
Chinese stocks rose around 2 percent to the year's highs, boosted by comments about the market from the country's top securities regulator.
Upbeat data on China's economy and the opening up of its markets to foreign investors have boosted its stocks this year.
That helped emerging stocks to test three-year highs last week before strong U.S. data and a hawkish U.S. Federal Reserve took some of the shine off higher-yielding assets.
"The MSCI emerging market (index) still trades close to the top of the trading range over the past two years," said Citi analysts in a client note.
"If the short end of the U.S. rates curve finally incorporates the risk of a more decisive shift of stance by the Fed - that can be the ultimate move to unlock a stronger momentum in the dollar."
The MSCI emerging equities index rose 0.54 percent, recovering from one-month lows set on Friday.
Growth in China's services sector slipped to a six-month low in July, however, according to data released late on Sunday. Continuación...