Aug 2 (Reuters) - Emerging market stocks rose on Monday
after a bruising month, led by gains in China, while currencies
were mixed after manufacturing PMIs against a softer dollar.
The Chinese yuan was contained by data that showed
factory activity grew at slowest pace since February 2020, while
rising virus cases also weighed.
Elsewhere in Asia PMIs indicate a healthy rebound but
slowing orders and rising price pressures.
Turkey's PMI, meanwhile, showed factory activity rose at the
fastest pace in six months. The lira rose 0.7%, inching
closer to seven-week highs. The focus will be on inflation data
from Turkey on Tuesday which is expected to come in closer to
the country's key interest rate.
"Investors started the week in the inevitable buy-the-dip
mode," said Jeffrey Halley, senior market analyst at Oanda.
"Sentiment may also have been helped by the unveiling of the
bi-partisan U.S. infrastructure bill."
U.S. senators on Sunday introduced a sweeping $1 trillion
plan to invest in roads, bridges, ports, high-speed internet and
As the dollar languished ahead of U.S. jobless claims
and payrolls data later this week, Russia's rouble
extended gains to a sixth straight session against the dollar,
looking past a second month of contraction in manufacturing
activity and falling oil prices.
Currencies of Poland and Hungary made
healthy gains against a stronger euro as manufacturing remained
in the expansion territory.
South Africa's rand shrugged off early losses to rise
0.3%, while stocks were just 1% shy of five-month
highs. The stock index increased 1.5% last week, despite
offshore investors being net sellers of South African stocks in
MSCI's index of EM stocks rose 1% after dropping
2.6% in the previous week on regulatory concerns in China.
China's securities regulator said on Sunday it will seek
closer cooperation with its U.S. counterpart and will support
overseas listings, after U.S. regulators tightened disclosure
for Chinese companies and voiced concern about Beijing's
Mainland China and Hong Kong <,HSI> stocks
rallied between 1% and 2.6%, while those in Turkey,
Russia and Poland all rose between 0.3% and
But concerns over rising coroanvirus cases across many parts
of Asia and Latin America capped gains.
"The virus remains the biggest threat to the outlook," said
Neil Shearing, group chief economist at Capital Economics. "The
rapid spread of the Delta variant... poses a bigger threat to
those emerging economies particularly in Africa and Latin
America where vaccination rates are lower."
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(Reporting by Susan Mathew in Bengaluru; Editing by Mike