The world reports China: Emerging Stocks Fall to One-Week Low on Europe, China Services

2011年11月5日土曜日

Emerging Stocks Fall to One-Week Low on Europe, China Services - San Francisco Chronicle

Article:Emerging Stocks Fall to One-Week Low on Europe, China S:/g/a/2011/09/05/bloomberg1376-LR182X0UQVI901-3PB4U4N9NSC53M36SJJO2E9EF7.DTL

Sept. 5 (Bloomberg) -- Emerging-market stocks fell for a second day, headed for the lowest close in more than a week, on concern the crisis facing Europe's most-indebted nations will worsen and after a Chinese services index sank to a record low.

The MSCI Emerging Markets Index dropped 2.4 percent to 997.9 at 12:36 p.m. in London. A close at that level would be the lowest since Aug. 26. South Korea's Kospi Index retreated 4.4 percent, the biggest decline worldwide. The Shanghai Composite Index slipped 2 percent. Benchmark indexes in Poland and Hungary slumped by at least 1.7 percent as their currencies depreciated against the Swiss franc for the fifth day.

An election loss for German Chancellor Angela Merkel's party in her home state fueled concern opposition is growing to bailouts for debt-saddled European nations. A Chinese services- industry index fell to 50.6 in August from a previously reported 53.5 in July, HSBC Holdings Plc and Markit Economics said in a statement today, adding to evidence that growth is moderating in the world's second-largest economy. A number of more than 50 indicates expansion.

Europe "remains a key area of concern for investors, due to the ongoing sovereign debt crisis and further evidence of an economic slowdown," analysts including Slava Smolyaninov, deputy head of research at UralSib Financial Corp. in Moscow, wrote in an e-mailed report today. "Poor macro data and growing concerns over the slowdown in the world economy are pushing equities lower," they said.

A U.S. government report on Sept. 2 showed non-farm payrolls were unchanged last month, and data tomorrow may show service industries grew at the slowest pace in more than a year.

Polish, Hungarian Stocks

The WIG20 Index fell 2.6 percent, led by a 4 percent decline in PKO Bank Polska SA, Poland's largest lender. The zloty depreciated 1.5 percent against the franc, on course for its longest streak of losses versus the Swiss currency in a month. Most Polish mortgages are denominated in foreign currencies including the franc, according to the country's financial regulator.

The BUX Index slid 1.6 percent, with OTP Bank Nyrt., Hungary's biggest bank, losing 2.2 percent. The forint weakened 1.6 percent against the franc.

The ruble slumped 1.2 percent against the dollar as Brent oil tumbled as much as 1.6 percent in London. The Micex Index retreated 1.4 percent in Moscow.

The Turkish lira depreciated 0.7 percent against the dollar as inflation unexpectedly accelerated to 6.65 percent in August. The ISE National 100 Index dropped 1.8 percent in Istanbul.

Sensex

India's Sensex lost 0.6 percent in Mumbai after the country's services industry grew at the slowest pace in more than two years in August. The services Purchasing Managers' Index fell to 53.8 last month from 58.2 in July, HSBC and Markit Economics said in an e-mailed statement today.

Taiwan's Taiex Index lost 2.7 percent.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries rose two basis points, or 0.02 percentage point, to 376, according to JPMorgan Chase & Co.'s EMBI Global Index.

The Markit iTraxx SovX CEEMEA Index of eastern European, Middle East and Africa credit-default swaps jumped nine basis points to 267.

--Editors: Linda Shen, Ana Monteiro