* Czech CB sees possible rate cut by end of year
* Poland’s nationalists lose majority in election – final
results
* Israeli shekel hovers near 4 to the dollar
* Country Garden’s debt payment at end of grace period
awaited
* EM stocks gain 0.5%, FX flat
Oct 17 (Reuters) – Equities in most emerging markets
recovered on Tuesday from a near one-week low though caution
lingered as investors awaited Country Garden’s offshore debt
repayment and kept an eye on geopolitical developments in the
Middle East.
MSCI’s gauge of emerging markets stocks advanced
0.5%, following dovish comments by U.S. policymaker Patrick
Harker.
However, risky currencies were little
changed against the dollar by 0910 GMT.
Investors have been on edge since the beginning of the
Middle East conflict and are worried about its impact on crude
supplies, while also keeping an eye on the U.S. Federal
Reserve’s outlook for interest rates.
Israel’s shekel slipped by 0.2% but stayed a nudge
above the psychologically key level of four per U.S. dollar on
worries that Israel’s war with the Palestinian militant group
Hamas could spread to the rest of the region.
Focus is also on China’s Country Garden where the
property developer’s entire offshore debt will be deemed to be
in default if it fails to make a $15 million coupon payment
following the end of a 30-day grace period.
Hong Kong-listed property stocks closed 0.4% up
following a choppy session, while the yuan was little
changed.
“China’s wider property sector remains under pressure, with
developers facing liquidity challenges amid still tepid property
sales,” UBS analysts wrote in a note.
“Beijing’s selective stance reflects a desire to support
homeowners rather than prop up developers with weak balance
sheets or operating models.”
In central and eastern Europe, Poland’s zloty
extended Monday’s gains, up 0.3% against the euro as the final
results of the national election showed the ruling Law and
Justice (PiS) party leading, but short of a majority.
Hungary’s forint added 0.2% as the country’s top
negotiator said it aims to conclude financing talks to
potentially unlock EU funds by the end of November.
Czech’s crown added 0.1% even after Governor Ales
Michl said the central bank was leaving the door open to a
potential interest rate cut by the end of the year amid cooling
inflation.
Meanwhile, South Africa’s rand weakened by 0.2%
against the greenback ahead of a central bank monetary policy
review.
Ghana’s sovereign dollar bonds dropped nearly 3 cents
following the government’s presentation of debt rework scenarios
to investors.
For GRAPHIC on emerging market FX performance in 2023, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2023, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Johann M Cherian in Bengaluru, editing by Ed
Osmond)
