LONDON: Rouble-denominated Russian stocks hit one-year highs on Thursday, lifted by a bounce in battered Uralkali and expectations that rouble weakness would aid exporters, while most emerging assets were flat to weaker.
The rouble also firmed half a percent even though the firm dollar index kept most emerging currencies under pressure and another oil exporter, Nigeria, suffered more weakness.
Russian stocks rose 1 percent for a year-to-date 1.7 percent gain, although in dollar terms, Moscow is one of 2014's worst performing equity markets, down almost 30 percent.
"The rouble has stabilised somewhat after the float, which can be perceived as good news. But if you ask me if the rouble is undervalued, I'd say 'not yet'," said Danske Bank analyst Stanislava Pravdova.
Data on Tuesday showed Russian annual industrial output rose 2.9 percent in October, a 5.1 percent month-on-month rise.
"Oil prices are the main issue for Russia but rouble weakness should compensate somewhat," Pravdova said, adding however that economic recovery was still far away for Russia.
Russia's first bond sale in six weeks on Wednesday met with tepid demand, with only a tenth of the offered amount sold.
Shares in potash miner Uralkali rose 5 percent after this week's 20 percent fall as work at a key mine was suspended, but its 2018 bond fell further.
Nigeria's naira opened at a new record low, falling 1.8 percent to the dollar as the central bank stayed out of the market. Stocks lost 2 percent on Wednesday.
Turkey's lira fell 0.2 percent before a central bank meeting that may cut the overnight lending rate. The main repo rate is expected to be left unchanged.
Shares in Garanti Bank slipped after Wednesday's jump, fuelled by news that Spain's BBVA would buy a stake.
South Africa's central bank is also expected to hold rates though some see a 25 bps tightening. The rand was flat.
"Expect some rand gains this afternoon if our out-of-consensus call for a rate hike proves correct," said John Cairns, currency strategist at Rand Merchant Bank.
MSCI's emerging equities index slipped 0.12 percent after data showed Chinese factory activity stalling in November .
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