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EMERGING MARKETS-Stocks and currencies muted; Nigeria, Mexico in focus
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EMERGING MARKETS-Stocks and currencies muted; Nigeria, Mexico in focus
Sep 11, 2024 5:02 AM

(Updated at 0918 GMT)

*

IMF agrees deal to give Ukraine access to $1.1 bln

*

Romanian inflation eases to 5.1% in August

*

Minutes from Hungary central bank's Aug meeting on tap

*

Stocks off 0.3%, FX indexes flat

By Johann M Cherian

Sept 11 (Reuters) - Most emerging market assets were

subdued on Wednesday in cautious trade ahead of a U.S. inflation

report, while investors also focused on a dollar bond issue in

Nigeria and a pivotal legislative vote on judicial reforms in

Mexico.

MSCI's index tracking emerging market currencies

inched up 0.1%, against the dollar index's

0.2% dip, while an index tracking equities

slipped 0.3% to it lowest in over a month.

Focus will be on U.S. inflation data for August later in the

day before the Federal Reserve meets next week to decide on

monetary policy, with expectations high for a 25 basis points

rate cut.

Economic growth worries out of the U.S. and China have

weighed on investor sentiment recently, with the main MSCI EM

stocks index on track for its first monthly drop of over 3%

since January, if losses hold.

Meanwhile, after Tuesday's fiery U.S presidential debate,

betting platforms swung in favour of Democrat candidate Kamala

Harris over Republican Donald Trump. The former president's

polices are seen as inflationary and an obstacle to global free

trade.

"For now, indications that Harris won this debate, even if

by a small margin, can keep a lid on the dollar and generally

prompt a more favourable environment for currencies with a high

beta to protectionism and geopolitical issues," analysts at ING

bank said.

In Africa, Nigeria raised $900 million in its first ever

domestic dollar bond sale, according to the issue's coordinator.

Nigeria's naira slipped 0.8% relative to the euro,

while the yield on dollar bonds maturing in 2029

climbed 13 basis points.

In Latin America, oil exporter Mexico's peso

strengthened 0.7% after a more than 1% drop in the previous

session on weak crude prices.

The country's Senate gave general approval to a judicial

reform where judges would be elected by popular vote, which

critics fear could threaten the rule of law and damage the

economy.

Meanwhile, Ukraine's hryvnia was flat. The

International Monetary Fund said it had reached a preliminary

agreement that would give the war-torn country access to about

$1.1 billion in financial assistance.

In central and eastern Europe, Romania's leu was

muted against the euro after data showed inflation cooled to

5.1% in August from the previous month.

Hungary's forint ticked up 0.1% ahead of the

release of minutes from the central bank's August monetary

policy meeting, due at 1300 GMT.

In South Asia, the yield on Sri Lankan bonds maturing in

2025 slid 360 basis points, easing from a

recent jump as a nationwide election nears.

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