* MSCI EM stocks rise 2.1%, FX muted
* China's Q2 economic growth at three-year low
* Poland's June inflation cools to 2.5% in May
By Utkarsh Hathi and Purvi Agarwal
July 15 (Reuters) - MSCI's index tracking emerging market
stocks rose on Wednesday, boosted by robust gains in Asian
equities as investors returned to chip firms, while currencies
were mixed ahead of more U.S. inflation data.
MSCI's global EM stocks index rose 2.1%, with most
gains driven by tech-heavy Asian bourses. Sentiment for
artificial intelligence-related stocks improved after ASML
, the world's biggest semiconductor equipment
manufacturer, raised its 2026 revenue forecast on robust demand
for its products.
South Korea's KOSPI climbed 6.2%, led by chipmaker SK
Hynix ( SKHY ), which gained 8.8%, while Taiwan's tech-heavy
benchmark advanced 2%.
Chinese stocks fell 0.2% after data showed the
country's economy expanded at its slowest pace in more than
three years.
On the FX front, the MSCI currencies gauge was
little changed, as was the dollar index, which steadied
after logging its biggest fall in nearly two weeks in the
previous session.
Investors awaited more price data from the U.S., after a
softer-than-expected consumer inflation reading on Tuesday
prompted traders to scale back expectations for a Federal
Reserve rate hike later this month.
"The weak print has outweighed the dollar-supportive impact
of renewed geopolitical tensions in the Middle East ... in the
immediate near-term, further dollar consolidation seems likely
amid still long positioning and less urgent Fed tightening
risks," said strategists led by Alvise Marino at UBS.
"However, we still favour buying dips, as Fed tightening risks
have been reduced but not eliminated, oil prices face upside
risk if Middle East tensions persist and strong U.S. earnings
could restore demand for U.S. assets."
Iran's Islamic Revolutionary Guard Corps threatened to close
"all other export corridors that benefit the U.S. and its
allies," Iranian media reported, after Iran shut the Strait of
Hormuz and the U.S. reimposed a naval blockade of Iranian ports.
Uncertainty over energy disruptions sent oil prices 2%
higher, offsetting some risk-on sentiment.
The South African benchmark dipped 0.2%, tracking a
dip in gold prices, while the rand was flat.
In emerging Europe, markets were mixed, with Polish blue-chip
stocks and Romanian equities up 0.1% and 0.7%,
respectively, while Hungarian shares dipped 0.5%.
Most emerging European currencies declined against the euro,
with the Hungarian forint losing the most ground by
0.6%.
The Polish zloty edged 0.1% lower. Data showed Poland's
annual inflation decelerated to 2.5% in June from 3.1% in May,
reinforcing expectations for monetary easing.
S&P Dow Jones Indices said late on Tuesday it was consulting on
reclassifying Poland to "developed" status from "emerging," a
decision that could come in September 2027.
Markets in Turkey remained closed for a public holiday.
HIGHLIGHTS:
** China new home prices fall at slower pace, but recovery
doubtful
** US Russia sanctions bill eases threat of tariffs on China and
India
** South Africa's financial regulator launches probe into state
asset manager
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