Currencies hit two-month low as initial results point to Trump win
Updated at 0844 GMT
China banks sell dollars to prevent fast yuan drop
Ukraine dollar sovereign bonds rally
MSCI EM stocks index down 0.6%, FX down 0.6%
By Johann M Cherian
Nov 6 (Reuters) -Investors in most emerging markets were pricing in a win for Republican Donald Trump in a tight U.S. presidential race on Wednesday, with an index tracking currencies on track for its biggest one-day drop in over one year as the dollar surged.
MSCI's index tracking currencies in major developing markets .MIEM00000CUS dropped 0.6% to touch levels seen more than two months ago, as the dollar strengthened over 1.6% and U.S. Treasury yields spiked.
As the results rolled in, Trump took the early lead over his Democrat challenger, Vice President Kamala Harris, although outcomes in critical battleground states were unlikely to be called for some time yet.
The Republicans also won control of the U.S. Senate, signalling that Trump's fiscal plans might face less resistance in Congress, which analysts say could stoke inflation, keep the dollar elevated and pressure inflows into emerging markets.
Mexico's peso MXN= was the hardest hit, dropping nearly 3% to touch a more than two year low, trading last at 20.6 to the dollar. Expectations are that the Latin American country could face trade and immigration barriers, as Trump has threatened a 200% surcharge on auto exports to the U.S..
"(Trump's) trade policies would have particularly negative consequences for Mexico, but also for the Eurozone and closely correlated with it the CEE region," said Piotr Matys, senior FX Analyst at In Touch Capital Markets.
Trump has also promised a tariff of 60% or more on goods from China. The yuan CHN= lost 1% - its steepest daily decline since February 2023, prompting reports that domestic banks were selling dollars to cushion the decline.
Heavy-weight China stocks .SSEC, .CSI300 were flat to slightly lower, while Hong Kong's Hang Seng index .HSI slid 2.2%.
Currencies in India INR=IN and South Africa ZAR= depreciated 0.2% and 1.5% respectively, while Turkey's lira TRYTOM=D3 firmed 0.3%.
In central and eastern Europe, Hungary's forint EURHUF= led declines with a 0.7% drop against the euro to mark a fresh 22-month low, while Poland's zloty EURPLN= weakened 0.3%.
Poland's central bank is expected to announce an interest rate decision later in the day, although the event could be overshadowed by political developments in the U.S.
On the flip side, Ukraine's hryvnia EUREAH= ticked up 1.8% against the euro and international sovereign bonds gained with some traders placing bets that a Trump presidency could mean a quicker end to the Ukraine-Russia war.
Israel's shekel ILS= strengthened 0.6%. Trump's stance on sanctions is perceived as detrimental to the country's arch rival Iran, along with others such as Lebanon, Iraq, and Yemen.
For GRAPHIC on emerging market FX performance in 2024 http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2024 https://tmsnrt.rs/2OusNdX
Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; editing by Philippa Fletcher
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
