EMERGING MARKETS-Stocks jump 1 pct, currencies firm post-G20

LONDON, Oct 25 (BestGrowthStock) – Emerging equities raced up 1
percent to a one-week high on Monday after a weekend G20 meeting
appeared to have done enough to avert an all-out currency war
and prompted investors to resume dollar-selling.

While the meeting pledged to move towards market-determined
exchange rates and for measures to reduce excessive external
imbalances, investors saw no reason to change their view of a
weaker dollar and stronger emerging currencies.

By 0750 GMT, benchmark emerging stocks (.MSCIEF: ) were up 1
percent on the day to a one-week high – their biggest one-day
gain in over two weeks.

“The mood is certainly EM-positive today,” said Nigel
Rendell, emerging markets strategist at RBC capital Markets.
“Not a great deal materialised at the G20 and people are trying
to push the dollar lower against the major as well as emerging
currencies.

“That’s leading to gains on the FX side and on the equities
side as a result.”

The strength was also fed by a jump in oil and commodity
prices as the focus shifted back to a Federal Reserve policy
meeting on Nov. 2-3 that could result in a fresh round of U.S.
monetary stimulus.

Most emerging currencies opened stronger with the Korean won
(KRW=: ) and Taiwan dollar (TWD=: ) leading Asian gains with rises
of almost 1 percent versus the greenback as markets bet central
banks would intervene less frequently in the immediate future.

The South African rand rose over 0.5 percent while in
central Europe, the forint (EURHUF=: ) was 0.8 percent stronger,
the Polish zloty (EURPLN=: ) added 0.6 percent and Romania’s leu
(EURRON=: ) was 0.7 percent up against the euro.

Sovereign emerging debt spreads were steady over U.S.
Treasuries (11EMJ: ) (11EML: ).

(Editing by Ruth Pitchford)

EMERGING MARKETS-Stocks jump 1 pct, currencies firm post-G20