BEIJING, April 2 — Emerging-market shares looked set to extend gains for a fourth day on today after upbeat manufacturing data from the United States further eased concern about a slowdown in global growth.
US data yesterday showed improvements in manufacturing activity last month and construction spending for February. That followed Chinese data showing manufacturing returned to growth for the first time in four months in March.
Most stock indexes across Asia ended higher, although Chinese blue chips finished lower.
But gains in MSCI’s index of emerging-market shares were capped at 0.16 per cent, after losses in countries like Turkey and South Africa that were under pressure from political tension and weak local manufacturing.
Stocks in Turkey fell 0.3 per cent and the lira gave up 1.6 per cent after the United States halted delivery of equipment related to the F-35 fighter aircraft to Turkey.
The disagreement is the latest of a series of diplomatic disputes between the United States and Turkey, which were partly responsible for pushing the currency into a crisis last year.
Also playing into the lira’s recent volatility were local elections, which saw President Tayyip Erdogan’s AK Party lose Istanbul and Ankara yesterday.
South African shares fell 0.3 per cent after gaining 3.5 per cent over the last five sessions. The rand gave up yesterday’s gains, which came following Moody’s delaying its rating decision.
The country’s seasonally adjusted Absa Purchasing Managers’ Index fell for a third consecutive month in March, a survey showed on Monday, hurt by power cuts and fewer new sales orders, just a few weeks ahead of general elections.
Hungary’s forint was set to extend losses to a sixth straight session and nine of the past 10 sessions.
Hungary’s deputy central bank governor, Marton Nagy, said giving strong forward guidance on Hungary’s monetary policy outlook would be irresponsible in the current volatile international environment. — Reuters
Source: The Malay Mail Online