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Emerging stocks fall on metals, euro

January 23, 2014

Emerging-market stocks and currencies fell with industrial metals after a gauge of China's manufacturing contracted. The euro strengthened and most stocks in the region rose on signs the economy is improving, while Turkey's lira slid to a record in the longest slump since 2001. The MSCI Emerging Markets Index dropped 0.7 per cent at 10 am in London , with a measure of Chinese shares in Hong Kong tumbling 2.1 per cent. The Stoxx Europe 600 Index was little changed and Standard & Poor's 500 Index futures fell 0.2 per cent. The euro rose against all but two of its 16 major peers, climbing most against currencies from commodity-producing nations. The lira weakened for a ninth day. Copper and Brent crude dropped 0.3 per cent. Chinese factory output may contract this month, a preliminary survey from HSBC Holdings Plc and Markit Economics signalled on Thursday as the People's Bank of China added further funds to the financial system to ease a cash shortage. Gauges of manufacturing and services industries in the euro area expanded more than forecast, according to Markit Economics. Reports on home sales and jobless claims in the US today may back the case for further cuts to stimulus.

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Source: Khaleej Times (United Arab Emirates)

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