BENGALURU: Equities in emerging markets slipped on Monday as lacklustre performances of China shares weighed, while most currencies flitted in a narrow range ahead of a plethora of global economic data this week including a crucial US jobs print.
As of 0850 GMT, MSCI’s index for emerging market stocks dipped 0.3%, a while a gauge for currencies dipped 0.1%.
Focus this week would be on US jobs report, due on Friday, which could be key for investors to gauge the size of potential rate cuts by the Federal Reserve this month.
“Our view remains that the US employment picture should slow down over the coming months, but that slowdown is consistent with a soft landing scenario,” Mohit Kumar, chief economist-strategist, Europe, Jefferies said in a note.
EM heavyweight Chinese shares closed more than 1% lower, with property stocks at the helm of losses, while onshore yuan dipped 0.3% after strengthening in the past six weeks.
Investors appeared to shrug off a private sector survey that showed China’s manufacturing activity in August swung back to growth, offering a glimmer of hope amid a string of dismal economic data this summer.
Traders also parsed a raft of data in Europe, with Hungary’s seasonally adjusted purchasing managers’ index (PMI) contracting for the third straight month in August, while Poland’s manufacturing sector declined slightly less last month than in July.
Poland’s zloty, Czech crown and the Hungarian forint were range-bound against the euro. A separate reading showed Turkey’s economy expanded by a less-than-expected 2.5% in the second quarter of the year, cooling in the face of a year-long monetary tightening drive.
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