Share

Emerging-market assets climb after debate

Bangkok - Emerging-market currencies climbed for the first time in three days, led by Mexico’s peso, and stocks gained after the first of three televised US presidential debates.

The peso jumped the most since February, rebounding from a record low, a sign investors may perceive Hillary Clinton outperformed Donald Trump in the contest.

South Korea’s won and South Africa’s rand reversed declines and Turkey’s lira halted two days of depreciation. Hong Kong’s Hang Seng China Enterprises Index paced gains in developing-nation equities, while stock gauges in the Philippines and Malaysia slid. Taiwan’s financial markets are shut as Typhoon Megi brought wind and rain across the island.

Clinton and Trump clashed sharply over trade, the US economy, race and foreign policy in  their first face-to-face debate, an event that put on display their starkly different personalities and visions of the nation’s future. Citigroup has said an election victory for Republican candidate Trump could sink equities and warned this week it may also spur volatility in both gold and currency markets.

“The market was risk-off prior to the debate, but it has turned risk-on now,” said Ha Jun Woo, a currency trader at Daegu Bank in Seoul. “There is the sense that Hillary Clinton is performing better in the debate - she certainly is more eloquent.”

The U.S. event marked the first time that voters got to see the major-party nominees on the same stage for a widely anticipated debate that promised to be a pivotal moment in a close and bitterly fought contest.

"Loved how Clinton performed,”  Win Udomrachtavanich, chairperson of KTB Securities (Thailand) in Bangkok, said by phone. “It is positive for the markets and most markets are moving up. The US presidential election is a key landscape for the global economy.”

Currencies

The MSCI Emerging Markets Currency Index climbed 0.3% at 08:11, set for the highest close since September 8. The Mexican peso, which had borne the brunt of investor anxiety about the November US election, surged 2%, halting a two-day loss.

The bounce provides a respite for a currency that has posted the worst performance among its major peers in the past month, fueled by polls that showed Trump gaining ground on Clinton. It has lost about a third of its value in the past two years. A Trump presidency could hurt bonds in emerging markets such as China and Mexico by weighing on global trade, according to Aberdeen Asset Management Asia

The Republican nominee has proposed protectionist measures including placing punitive tariffs on Chinese imports and building a wall on the US border with Mexico. Trump is behind Clinton by just 1.6% in the The Real Clear Politics average of national polls.

The won, rand and Indonesia’s rupiah strengthened at least 0.6%, while Malaysia’s ringgit and India’s rupee climbed 0.2%.

Stocks

The MSCI Emerging Markets Index advanced 0.6% as 10 out of 11 industry groups increased, led by consumer-discretionary companies and materials stocks.

The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong climbed 1.3% halting a two-day drop. South Korea’s Kospi index advanced 0.7% and Vietnam’s Index increased 0.5%.

The Philippine Stock Exchange Index declined 1.1% poised for its steepest three-day slump since May, amid foreign-fund outflows. Overseas investors were net sellers of the the nation’s shares for a 23rd day on Monday, data compiled by Bloomberg show.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders