* BAT trio push up EM stocks index
* Turkish lira rises on surprise current account surplus
* Rising inflation, energy shortages weigh on FX
Oct 11 (Reuters) - Gains in major technology stocks helped
emerging market equities reach a near two-week high on Monday,
while currencies rose slightly from of last week's losses as
investors remained on edge over rising inflation.
Hong Kong-listed Baidu, Alibaba Group
and Tencent, which are some of the largest emerging
market (EM) stocks, rose between 2% to 8% on easing concerns
over the long term impact from a regulatory crackdown in China.
The three, known informally as the BAT trio, helped MSCI's
EM index add 0.8%. Alibaba rose the most after Daily
Journal Corp, chaired by Charlie Munger, boosted its Alibaba
holdings by 83% during the third quarter.
Most emerging market currencies recovered from last week's
losses, but remained under pressure from surging oil prices and
energy shortages, which could feed into inflation and keep
economic growth slow - a phenomenon referred to as
"Higher energy prices/shortages will inevitably make their
way through global value chains in the form of rising prices and
potentially shortages of industrial and consumer goods," Jeffrey
Halley, senior market analyst at OANDA wrote in a note.
Turkey's lira rose 0.4% from record lows, after data
showed the country's current account unexpectedly swung to a
surplus in August.
But the import-reliant economy is expected to remain under
pressure this from supply chain disruptions, a falling exchange
rate and rising energy costs.
Russia's rouble rose 0.2%, benefiting from stronger
crude prices, while Russian stocks touched record
The rouble was among the few EM currencies to gain last
week, as a lower-than-expected government forex buying program
also lent support.
In central Europe, the Czech crown rose 0.1% to
the euro, slightly more than its regional peers as September
inflation came in above expectations, pointing towards more
interest rate support from the central bank.
Focus was also on the parliamentary election, with two main
Czech opposition groups securing a majority and the chance to
form a government.
Rising inflation expectations across emerging markets have
spurred several central banks into hiking rates. But a sustained
rise in commodity prices may limit their effectiveness.
Polish stocks rose 0.6%, while the zloty
was flat as assets in the country appeared to be unperturbed by
concerns that Poland could possibly leave the European union.
For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX
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 Toby Chopra)