EMERGING MARKETS-PMIs dampen emerging market mood, Nafta drives peso jump - Reuters
October 1, 2018 / 9:18 AM / a year ago
Asian currencies including the Indian rupee, the Taiwanese dollar and South Korea’s won all weakened against the dollar after growth in the Chinese manufacturing sector stalled in September, suggesting a trade war with the United States was taking a toll.
Turkey’s lira, one of the biggest victims of the outflows of cash from the developing world in the past six months, rode out its own batch of poor data to firm around 1 percent.
“There does seem to be moves by the Turkish government to improve relations with the U.S.,” said William Jackson, chief EM economist at Capital Economics.
“We are not seeing the belligerence we saw in August which helped to cause a sharp fall in the lira.”
China’s financial markets were closed for a holiday, as was Hong Kong’s stock exchange but the offshore version of its yuan weakened by 0.2 percent after the PMI numbers. The rupee shed 0.4 percent and the Taiwanese dollar 0.2 percent.
President Donald Trump’s battery of trade conflicts has also fed concerns over the pace of growth, crucial to retain investor confidence in developing markets.
“With the addition of Canada, it has removed lots of uncertainty that there could be U.S. congressional hurdles in preventing Mexico signing a deal with the United States,” Jackson said.
EMERGING MARKETS-PMIs dampen emerging market mood, Nafta drives peso jump - Reuters
October 1, 2018 / 9:18 AM / a year ago
Asian currencies including the Indian rupee, the Taiwanese dollar and South Korea’s won all weakened against the dollar after growth in the Chinese manufacturing sector stalled in September, suggesting a trade war with the United States was taking a toll.
Turkey’s lira, one of the biggest victims of the outflows of cash from the developing world in the past six months, rode out its own batch of poor data to firm around 1 percent.
“There does seem to be moves by the Turkish government to improve relations with the U.S.,” said William Jackson, chief EM economist at Capit
al Economics.
“We are not seeing the belligerence we saw in August which helped to cause a sharp fall in the lira.”
China’s financial markets were closed for a holiday, as was Hong Kong’s stock exchange but the offshore version of its yuan weakened by 0.2 percent after the PMI numbers. The rupee shed 0.4 percent and the Taiwanese dollar 0.2 percent.
President Donald Trump’s battery of trade conflicts has also fed concerns over the pace of growth, crucial to retain investor confidence in developing markets.
“With the addition of Canada, it has removed lots of uncertainty that there could be U.S. congressional hurdles in preventing Mexico signing a deal with the United States,” Jackson said.