Stocks Drop Due to Tencent Data From China
Emerging market equities declined for the fourth straight session on Monday amid weak economic data from China and calls for more regulatory tightening in the country. At the same time, the weakening of the dollar supported risky currencies.
The Turkish lira rose 0.6% for a third straight session on the back of declining oil prices.
The South African rand has changed little. On Friday, South Africa’s new finance minister, Enoch Godongwana, said that he would not abandon his predecessor’s budget plans.
Disappointing Chinese data weighed down market sentiment.
Emerging market equities declined for the fourth straight session on Monday amid weak economic data from China and calls for more regulatory tightening in the country. At the same time, the weakening of the dollar supported risky currencies.
The Turkish lira rose 0.6% for a third straight session on the back of declining oil prices.
The South African rand has changed little. On Friday, South Africa’s new finance minister, Enoch Godongwana, said that he would not abandon his predecessor’s budget plans.
Disappointing Chinese data weighed down market sentiment.
Industrial production and retail growth in China slowed sharply in July and was weaker than forecasts as new COVID-19 outbreaks and floods weakened business activity.
Shares in Chinese internet giant Tencent fell 3% after state media published an article calling for more regulation of the online gaming segment.
The MSCI Emerging Markets Index fell 0.4%. At the same time, the rise in Indian stocks thanks to the adoption of a $ 1.35 trillion national infrastructure plan helped to contain losses.
Pakistani sovereign dollar bonds fell 1 cent as investors feared the regional repercussions of the Taliban’s seizure of power in Afghanistan.
