You are using an older browser version. Please use a supported version for the best MSN experience.

Emerging stocks hit 6-year high

eNCA logo eNCA 2017-10-11

Photo_Web_Hong_Kong_Shares_01_04_16: Hong Kong and Shanghai stocks sank on Friday morning. © AFP / Wang Zhao Hong Kong and Shanghai stocks sank on Friday morning. LONDON - Emerging market stocks sailed to fresh six-year highs on Wednesday, buoyed by optimism over global growth and company earnings.

Currencies from emerging economies benefited from the dollar stalling on concerns over United States (US) President Donald Trump’s tax plan.

MSCI’s emerging market index added 0.4 percent in its second straight day of gains, trading at its highest level since August 2011, as Asian heavyweights tracked the global rally that saw Wall Street scaling all-time highs on Tuesday.

Also read: South Africans are drowning in debt

South Korea’s KOSPI index added 1 percent to close at record highs as expectations for robust third-quarter earnings from corporates such as Samsung Electronics boosted market sentiment. Taiwan stocks matched those gains.

Investors risk appetite was whetted after the International Monetary Fund (IMF) raised its outlook for the global economy, indicating the current broad-based global economic upswing will likely be sustained this year and next.

The IMF upgraded its global growth forecast for 2017 by 0.1 percentage points to 3.6 percent and to 3.7 percent for 2018, driven by a pickup in trade, investment and consumer confidence.

Turkey got one of the biggest upgrades after a stronger-than expected performance at the start of the year.

“The IMF doubled its 2017 GDP growth forecast to 5.1 percent - raises 2018 to 3.5 percent,” Simon Quijano-Evans, emerging market strategist at Legal & General Investment Management wrote in a note to clients. “That should remove a lot of the doubts.”

Also read: IMF cuts SA growth forecasts as politics takes its toll

Turkey’s lira strengthened 0.9 percent against the dollar. Those gains follow losses in seven of the past eight sessions after Turkish assets have come under pressure in recent days over a stand-off with Nato ally Washington.

But currencies broadly firmed against the weaker dollar as Trump’s escalatin war of words with Republican Senator Bob Corker raised concerns about the administration’s ability to pass promised reforms.

South Africa’s rand strengthened 1 percent in a second day of gains while Russia’s rouble edged 0.1 percent higher. However, China’s yuan eased against the dollary, as corporate demand for the greenback outweighed a much stronger official fix.

Not everyone is convinced the sector’s difficulties are past. Emerging local debt yields rose on Monday to the highest since August though they have clawed back some gains since.

Also watch: The robot that helps sick kids go to school

“Currencies ... have been a bit wobbly since the end of last week though the dollar is retreating a bit now,” said Rob Drijkoningen, head of emerging market debt at Neuberger Berman.

He noted the expectations of tax reform and a December rate rise had boosted U.S. Treasury yields

“Then there is also quite high positioning in EM by hedge funds and short-term players so all that is coming together to add to pressure on EM,” Drijkoningen added.

How to retire before 40 without R10 million in your bank account (Provided by GOBankingRates) <p>Most Americans don’t plan to retire until at least age 60. Recently, more than half of adults surveyed by GOBankingRates said they <a href="">don’t expect to retire until they’re 65 or older</a>.</p><p>But there are people who have managed to leave the 9-to-5 at a much younger age — people like Billy and Akaisha Kaderli, who retired at the age of 38 in 1991. Over the last 26 years, they have traveled the world and lived life on their terms.</p><p>The Kaderlis didn’t win the lottery or inherit a windfall that allowed them to quit their jobs. In fact, they didn’t even have $1 million saved. The Kaderlis retired before 40 with about $500,000. If you want to <a href="">grow your savings and retire early</a>, keep reading to learn more about how they did it — and you can, too.</p> How to Retire Before 40 Without $1 Million

More From eNCA

image beaconimage beaconimage beacon