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China c.bank set to leave key rate unchanged on Fri
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Pakistan: Will move towards tapping China bond market in
next FY
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Fitch hikes India's FY24, FY25 GDP growth expectations
By Ankika Biswas
March 14 (Reuters) - Emerging market stocks and
currencies were largely listless on Thursday as investors looked
for more definite signs about the path of global policy easing
cycles, while awaiting the IMF's final review of Pakistan's $3
billion stand-by arrangement.
The MSCI index tracking emerging market stocks
edged 0.2% higher as of 5:00 a.m. ET (0900 GMT), while the
currencies gauge was muted.
Investors keenly await a slew of U.S. economic data,
including producer prices inflation and retail sales, ahead of
next week's U.S. policy decision. Market participants will seek
clues on when interest rate cuts might commence this year, with
bets standing firm for a reduction in June.
Meanwhile, a Reuters survey showed China's central bank is
expected to leave a key policy rate unchanged when it rolls over
maturing medium-term loans on Friday, amid uncertainty over the
timing of expected U.S. rate cuts.
China's Wuxi AppTec's Shanghai and
Hong Kong-listed shares dropped 5.7% and 13.1%, respectively, on
a Washington-based global trade association representing
biotechnology firms' steps to "separate" from the company. The
stock bucked a biotech share rally, fuelled by market talks of
potential policy support for the sector.
Turkish President Tayyip Erdogan will speak at a rally in
the eastern province of Agri (1100 GMT), ahead of nationwide
local elections on March 31. The lira weakened to
32.1255-per-dollar.
The International Monetary Fund will hold a second and last
review of Pakistan's $3 billion stand-by arrangement this week,
during which the country will ask for a new longer-term bailout.
The Pakistani rupee fell, while stocks jumped
1.8%.
Further, Finance Minister Muhammad Aurangzeb in an interview
said Pakistan will be moving towards tapping the China bond
market in the next fiscal year.
In Central and Eastern Europe, Hungary's forint
underperformed its regional peers. It has been the worst hit so
far this year due to a rift between the central bank and
government.
"Both the koruna (Czech crown) and the forint are
on edge from concerns that their respective monetary policies
could become too loose too soon. For the forint, it will be a
more uphill battle to ward off structural concerns about an
already ultra-dovish reputation," Commerzbank FX analyst Tatha
Ghose said.
Hungary will, as of April 1, scrap an interest rate cap,
that has been applied to loans on small and medium businesses
since late 2022, on the back of easing inflation and borrowing
costs.
Elsewhere, ratings agency Fitch raised its estimate for
India's economic growth for this fiscal year and next due to
strong domestic demand and persistent growth in business and
consumer confidence levels, but tempered its view on rate cuts.
HIGHLIGHTS:
** Bank of Korea cautious in final stage of inflation fight
** POLL- Pakistan cenbank expected to hold rates on Monday,
cut in Q2 2024