* EM FX set for fifth straight weekly loss
* Lira slumps to new record low
* Chinese property bonds, stocks slump
Oct 8 (Reuters) - Most emerging market currencies fell on
Friday ahead of key U.S. payrolls data, while Chinese stocks
surged after a week-long holiday, even as concerns over a
property market debt default persisted.
Turkey's lira slipped 1% to a record low of 8.9650
against the dollar, and was the worst performing emerging market
(EM) currency on the day after a Reuters report suggested that
President Tayyip Erdogan was losing confidence in central bank
governor Sahap Kavcioglu, less than seven months after he sacked
Erdogan had gone through a string of central bank presidents
over the past two years in a bid to enforce his unorthodox view
that high interest rates cause inflation, which has seen prices
spike, while pushing the lira to record lows.
Broader EM currencies slipped as investors adopted a
cautious stance ahead of U.S. payrolls data later in the day. A
stronger-than-expected reading could affirm the Federal
Reserve's faith in the U.S. economy, and push the bank into
tightening policy earlier than signalled.
MSCI's index of emerging market currencies
fell 0.2%, and was set for a fifth straight week of losses as
concerns over sluggish economic growth and debt problems in
China saw investors pull out of risk.
U.S. Treasury yields and the dollar strengthened ahead of
the announcement, while a temporary raising of the U.S.
government's debt ceiling also helped sentiment.
"The U.S. employment report for September could prove
determinant on whether the Fed will begin tapering its
quantitative easing (QE) purchases next month," Charalambos
Pissouros, head of research at JFD Group wrote in a note.
"(A more decent report than August) may encourage market
participants to add to bets over a November QE tapering by the
Fed, and perhaps even bring forth their expectations over when
the first interest rate hike could take place."
Chinese stocks surged after a week-long holiday, helped by
encouraging service sector data and easing political tensions
with the United States.
But bonds and shares issued by Chinese property firms
slumped amid few cues on how regulators aim to contain the
contagion from the debt problems of the country's second biggest
developer, China Evergrande Group.
Russia's rouble slipped 0.4%, while stocks
rose 0.2%. Heavyweight oil and gas producer Gazprom's
shares slipped 1% as it was forced to halt operations at its
Amur gas processing plant, due to a fire.
Most central European currencies fell slightly to the euro.
Expectations of interest rate increases in the region rose as
data showed inflation on the rise.
For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2021, see
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Ambar Warrick
Editing by Robert Birsel)