Most stocks slip, currencies flat, Georgian protests watched

Reuters

Most stocks slip, currencies flat, Georgian protests watched

9:59 sáng giờ GMT, 29 Tháng 10 2024

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Updated at 0924 GMT

Thai govt. pushes for higher inflation target at BOT meeting

Eyeing US election, China to bolster stimulus, sources say

Rand edges up ahead of mid-term budget

MSCI EM stocks index down 0.1%, FX flat

By Johann M Cherian

Oct 29 (Reuters) -Equities across most developing markets slipped on Tuesday and currencies traded close to the flat mark, while investors monitored political developments in Georgia for the second day following contested election results.

MSCI's index tracking bourses across most emerging markets .MSCIEF dipped 0.1% to touch levels last seen in mid-September, while the index tracking currencies against the U.S. dollar .MIEM00000CUS hovered near levels seen in early August.

Risk taking was fragile as markets weighed the effect China's massive stimulus could have on sluggish domestic demand, and the implications of a tightly contest U.S. election.

Republican candidate Donald Trump recently took a lead over rival Kamala Harris, according to prediction market bets. His policies are seen as likely to stoke domestic inflation and also be detrimental to investments in some emerging markets.

Separately, the U.S. is finalizing rules, effective Jan. 2, that will limit the country's investments in artificial intelligence and other technology sectors in China that could threaten its national security.

"The framework forms part of Washington's broader tech restrictions that aim to limit China's access to advanced chipmaking equipment and critical AI components," analysts at UBS wrote.

China equities .SSEC, .CSI300 closed over 1% lower. Reuters reported that the country is considering approving next week the issuance of over $1.4 trillion in extra debt in the next few years, which could be further bolstered if Donald Trump wins the U.S. election.

Meanwhile, Thailand's stock exchange .SETI and the baht THB= were muted. The local finance minister said the country's inflation target should work to lift price growth above 1%. The government has pushed to lift the current 1% to 3% target range to spur a sluggish economy.

In the caucuses, Georgia's lari EURGEL= slipped 0.4% against the euro as investors also kept an eye on public protests in Georgia where the pro-Russia governing party recently won in parliamentary elections that were marked by reports of voting irregularities, prompting Western powers to call for investigations.

Sovereign bonds were muted, while UK-shares of Georgian banks TBC Bank TBCG.L and Bank of Georgia BGEO.L rebounded 2% and 1.7%, receptively, from sharp losses in the previous session.

Poland's zloty EURPLN= was flat, while yields on 10-year bonds PL10YT=RR edged up 8 basis points. The country neighbours war-entangled Ukraine and said it could raise financing for defence spending through the issue of a dedicated bond.

South Africa's rand ZAR= edged higher by 0.3% against the dollar with focus on a mid-term budget announcement on Wednesday that will provide clues on the fiscal outlook of the continent's most industrialised economy.

For GRAPHIC on emerging market FX performance in 2024 http://tmsnrt.rs/2egbfVh

For GRAPHIC on MSCI emerging index performance in 2024 https://tmsnrt.rs/2OusNdX

Reporting by Johann M Cherian in Bengaluru, Editing by Angus MacSwan

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