EMERGING MARKETS-Stocks claw higher, currencies sags after another hard week
By Chris Vellacott
LONDON Oct 3 (Reuters) - Emerging market stocks snapped a six-day losing streak on Friday though it made little impact on a fourth straight week of falls as the soaring dollar also kept the pressure on developing economy currencies.
MSCI's emerging equities index was up 0.4 percent as the week's sell-off in global stocks abated ahead of U.S. jobs data. But that did little to dent its 3 percent slide since Monday and 10 percent plunge since early September.
"Everything we are seeing now in emerging markets is very much driven by global monetary policy," said Danske Bank analyst Lars Christensen. "Overall it's hard to see this stopping before we see a stabilisation and a stop to this dollar strengthening,"
Russia's remained in the spotlight as stocks headed for another weekly fall and the rouble weakened to 44.48 against a dollar-euro basket, close to the 44.40 level where the central bank automatically starts unlimited interventions.
The rouble has been under heavy selling pressure for months due to the Ukraine crisis and strong demand for dollars from Russian firms shut out of international capital markets, while falling oil prices are the latest strain.
The currency first breached the 44.40 level on Oct. 1, prompting the central bank's first market interventions since May.
Other dollar-sensitive emerging market currencies also turned lower again on Friday having rallied in the previous session when the greenback had paused for breath.
South Africa's rand weakened 0.3 percent following weak consumer confidence data, while Turkey's lira also slipped around 0.2 percent as consumer prices data showed slower than expected inflation. Continuación...