EMERGING MARKETS-S.Africa, Turkey stocks hit fresh record highs

Reuters Middle East

LONDON, Jan 10 (Reuters) - South African and Turkish stocks

hit fresh record highs on Thursday, as stronger-than-expected

Chinese exports boosted confidence in riskier emerging markets.

The value of Chinese exports rose 14.1 percent last month

compared with a year earlier, data showed on Thursday.

Resilience in the Chinese economy is a boon for South

Africa's mining companies, while investors have been

bullish on Turkey's stock market, which rallied by over

50 percent last year.

Benchmark emerging equities rose 0.35 percent to

three-day highs, and Chinese stocks rose 0.4 percent.

Emerging European currencies showed mixed performance.

The Czech crown hit a six-month low on

expectations the central bank will step in to weaken the

currency, though Czech stocks hit their highest since

August 2011.

The Romanian leu hit an 8-1/2 month high against

the euro, extending recent gains after a clear election win last

month gave the Romanian government a mandate to negotiate a new

deal with the International Monetary Fund.

The Polish zloty hit a one-week high against the

euro, a day after Poland's central bank cut rates but signalled

a pause in the easing cycle.

Polish Finance Minister Jacek Rostowski called on the

central bank to continue cutting rates, however.

"We do not exclude that the (Monetary Policy) Council may

make a break in Feb to avoid four cuts in a row, but should

resume easing in March," ING analysts said in a client note.

In Egypt, five-year credit default swaps fell to a one-month

low of 465 basis points, according to Markit, after the country

this week got a $2.5 billion lifeline from Qatar, while the

pound hovered near record lows and stocks fell

from recent two-month highs.

(Reporting by Carolyn Cohn; editing by Jason Neely)

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