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EMERGING MARKETS-Stocks come off session lows after Biden's comments on blast in Poland

Reuters · 11/16/2022 05:37
EMERGING MARKETS-Stocks come off session lows after Biden's comments on blast in Poland

Stocks ease off two-month highs as Asia weighs

Polish zloty up, stocks slide

CEE FX rise investors look away from Poland blast - strategist

By Susan Mathew

- Emerging markets stocks steered away from session lows on Wednesday after U.S. President Joe Biden's comment the missile that killed two people in Poland may have been fired from Russia helped assuage concerns of rising geopolitical tensions.

Russian stocks .IMOEX slipped 0.3%, but cut some losses, while Polish stocks .WIG20 retreated from five-month highs, down 2.0%, breaking a seven-session winning streak.

Meanwhile, the Polish zloty PLNEUR= was volatile. It was last up 0.6% against the euro, having fallen 1% during the session.

Russia's rouble RUB= was trading at around 60 per dollar. RU/RUB

"Markets got scared by the initial in the evening yesterday. It was supposed to be a major risk off event," said Marek Drimal, lead CEEMEA strategist at Societe Generale, referring to the blast in Poland.

"But given the that has surfaced since that it might have been any direct attack on Poland and directly involving Russia, markets are focusing away from that event."

Other central European currencies firmed against the euro, with Hungary's forint EURHUF= jumping 0.9% to snap a three-day losing streak.

Against a weaker dollar, most currencies outside Asia gained, with the South African rand ZAR= up 0.6%, while Mexico's peso MXN= stayed close to 2-1/2 year highs, up 0.2%. FRX/

Among stocks, MSCI's index of emerging market shares .MSCIEF broke a three-day wining run and eased off two-month highs, down 0.4%, as Asian stocks .MIAPJ00000PUS fell 0.4%.

But most other bourses rose, with the Turkish benchmark .XU100 up more than 2% and South African stocks .JTOPI 0.3% higher.

Meanwhile, Group of 20 leaders of the world's biggest economies agreed to pace their interest rate hikes carefully to avoid spill overs and warned of "increased volatility" in currency move.

In Zambia, bank meetings to reduce the country's official debt burden are unlikely to finalise until early year, sources familiar with the process told Reuters.

For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh

For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB

(Reporting by Susan Mathew in Bengaluru; Editing by Shinjini Ganguli)