EMERGING MARKETS-China's yuan sees biggest quarterly fall on record

jueves 30 de junio de 2016 06:02 GYT

LONDON, June 30 (Reuters) - China's yuan hit a six-month low
and chalked up its biggest quarterly fall against the dollar on
record on Thursday as Beijing suggested it was happy for the
weakness to continue.
    Chinese sources told Reuters the People's Bank of China
(PBOC), China's central bank, was willing to let the yuan fall
to 6.8 per dollar over the rest of the year, to
support the world's No. 2 economy. 
    The currency, trading at 6.6 per dollar by 0950 GMT, is down
roughly 3 percent since March and if falls as far as suggested,
2016 could mirror last year's record 4.5 percent drop. 
    "The central bank is willing to see yuan depreciation, as
long as depreciation expectations are under control," a
government economist, who requested anonymity, said. The central
bank responded, calling the report "inaccurate".
    Emerging markets (EM) were broadly higher on the day with
stocks, bonds and many currencies showing a comfortable
lead over developed market peers at the year's half way mark.
    MSCI's main EM shares index was up 1 percent, 2.8
percent on the month and 4.5 percent for the year after some
stellar performances in Latin America and Russia following an
85-percent rebound in oil prices since mid-January.
    Polish and Romanian markets remained
subdued in the wake of last week's Brexit vote, though mostly
the concerns appeared to have largely eased.
    Fund flow experts the Institute of International Finance
(IIF) said the early signs showed the UK vote to quit the EU had
had an no immediate impact on emerging market trading.
    It said daily EM portfolio flows data suggested outflows
were a fairly minor $210 million on "Brexit Friday" and that for
June as a whole foreign investors had pumped a net $16.7 billion
into emerging market assets. 
    "The markets seem to have shrugged off the Brexit concerns
quite comfortably," TD Securities strategist Paul Fage said. "We
have now put out recommendations to buy the currencies that have
fallen but actually have very little linkage to the UK."
    In Asia, a widely expected move saw Taiwan trim its interest
rates for the fourth consecutive meeting in a bid to shore up
flagging growth. The 0.125 percentage point cut, took rates to
1.375 percent, a level last seen in mid-2010.
    The Czech Republic and Romania are likely to keep their
rates steady later, but Mexico could hike its rates to relieve
some of the recent upward pressure on the peso. 
    "The consensus is for a 25 basis point hike in Mexico but we
are in the minority that think they will stay on hold. We think
the pressure on the peso has probably eased enough for them,"
Fage said.
 Emerging Markets Prices from Reuters            
 Equities                  Latest    Net Chg  % Chg  % Chg      
                                                     on year    
 Morgan Stanley               
 Emrg Mkt Indx    831.16    +9.34   +1.14   +4.66     
 Czech Rep            813.87    +5.66   +0.70  -14.90     
 Poland           1752.89    -3.31   -0.19   -5.72     
 Hungary           26526.10  +142.78   +0.54  +10.89     
 Romania           6493.89    -9.82   -0.15   -7.29     
 Greece              540.96    -0.92   -0.17  -14.32     
 Russia             931.71    +0.36   +0.04  +23.07     
 South Africa   46177.05  +444.59   +0.97   +0.83     
 Turkey          77056.94  +344.96   +0.45   +7.43     
 China             2929.61    -1.99   -0.07  -17.22     
 India           27036.00  +295.61   +1.11   +3.52     
 Currencies              Latest    Prev    Local    Local       
                                   close   currency currency    
                                           % change % change    
                                                    in 2016     
 Czech Rep      27.09     27.10   +0.01    -0.35      
 Poland          4.43      4.42   -0.21    -3.84      
 Hungary       316.33    316.78   +0.14    -0.53      
 Romania         4.52      4.52   +0.10    +0.01      
 Serbia        123.16    123.25   +0.07    -1.37      
 Russia            64.04     63.67   -0.58   +13.91      
 Kazakhstan       339.06    338.96   -0.03    +0.42      
 Ukraine           24.80     24.90   +0.40    -3.42      
 South Africa      14.74     14.78   +0.32    +4.91      
 Kenya            100.92    101.00   +0.08    +1.27      
 Israel             3.84      3.85   +0.14    +1.12      
 Turkey             2.88      2.89   +0.20    +1.19      
 China              6.65      6.64   -0.17    -2.32      
 India             67.52     67.41   -0.16    -1.96      
 Brazil             3.25      3.22   -0.74   +22.00      
 Mexico            18.50     18.48   -0.15    -7.21      
 Debt                 Index   Strip Spd  Chg   %Rtn   Index     
 Sov'gn Debt  EMBIG   403        -5    .06  7 42.37 1   
 All data taken from Reuters at #N/A The record could not be
found GMT.            
 Currency percent change calculated from the daily U.S.         
 close at 2130 GMT.            

    For GRAPHIC on emerging market FX performance 2016, see link.reuters.com/jus35t
    For GRAPHIC on MSCI emerging index performance 2016, see link.reuters.com/weh36s
    For GRAPHIC on MSCI emerging Europe performance 2016, see link.reuters.com/jun28s
    For GRAPHIC on MSCI frontier index performance 2016, see link.reuters.com/zyh97s
    For CENTRAL EUROPE market report, see 
    For TURKISH market report, see 
    For RUSSIAN market report, see )

 (Editing by Louise Ireland)