Tuesday, November 23, 2010

Emerging Stocks Tumble Most in Five Months on Korean Skirmish


Emerging markets stocks fell the most in almost five months in North and South Korea exchanged artillery fire and investors speculated a rescue package for Ireland to fail, Europe's debt crisis stem.

The MSCI Emerging Markets Index fell by 2.1 percent to 1,090.01 from 05.10 New York, halting a three-day advance, falling 1.8 percent and the 29th most since the June. China's Shanghai Composite Index slipped 1.9 percent and Turkey's ISE National 100 Stock Index fell by 2.3 percent. South Korea KOSPI index closed 0.8 percent were low at 3 clock time when the first reports on the military skirmishes.

A month without supply contracts Korean won about 4.2 percent and 3.7 percent to 1,173.78 as much per dollar.

"If this escalates into a real war, of course, is to find shares will start with the resources and raw materials impact," Monika Yang monitor, the $2 billion at Hamon Asset Management Ltd. in Hong Kong helps, said by telephone. "It would be very unstable in the region."

South Korean fighter jets scrambled and returned fire after North Korea dozen shells at Yeonpyeong island thrown and injured 14 soldiers. North Korea fired "several" bowls, South Korea's Joint Chiefs of Staff said in a statement on its website.

Emerging Markets Equity indexes were little, after the data from the U.S. Department of Commerce changed showed the U.S. economy grew year on year by 2.5 percent in the third quarter more than previously calculated.

Russia MICEX fell by 0.9 percent, the most in a week. OAO Novatek, Russia and the second largest natural gas producer, fell by 2.2 percent and the country's largest mining company, OAO Norilsk Nickel fell by 1 percent.

Brazil's Bovespa stock index fell by 2.4 percent, capping the biggest two-day decline since June. MRV Engenharia e Participacoes SA Empreendimentos Participacoes SA and PDG Realty and led a dryer for the home builders at least 5 percent by mid-month consumer prices rose more than expected.

Have buying opportunity

Oil lost 0.6 percent to $ 81.25 a barrel in New York. Both copper and nickel prices rose in London trading.

The ruble depreciated 0.8 percent to 31.3863 per dollar.

Each jump in the victory against the dollar in the next "few days" represents a buying opportunity, "said Brian Jackson, emerging markets strategist at RBC Capital Markets in Hong Kong.

the game "is not this incident is our general medium-term positive image change," Jackson wrote in an e-mail report ", a view that is always with the possibility of tensions with the North Korean regime, but who sees the likelihood of escalation into serious military conflict to be relatively low. "

Hungary BUX stock index slipped 1.5 percent as concern about the debt crisis in Ireland, also helped, could suffer the fear of global growth.

Irish Prime Minister Brian Cowen said his government would resign after passing the budget of the country responds to the call by the Greens for the elections in January, voter dissatisfaction with his handling of the crisis.

"Credit-Negative"

Moody's Investors Service said the bailout, Goldman Sachs Group Inc. estimates can € 95 billion (129 billion U.S. dollars) in total, increasing debt and Ireland may be a "negative balance" for the country. Ireland is the second nation euro rescue than the cost of the savings banks in the country required it vulnerable to a repetition of the Greek debt crisis that destabilized the euro.

The Shanghai Composite, which tracks more stocks China's stock markets fell to its lowest close since October 1911. The meter has more than 10 percent since reaching a high of nearly seven months on 8 November as investors speculated the government raising interest rates and price controls to slow inflation lost.

China needs more goods as a key product, call for the government to be in the reserves, the People's Daily said to hold. The amount of provisions for large goods should also be increased, said the editorial. China is also the supply of grain and oil released from state reserves to increase, the editor said.

The difference between the yield investors demand from emerging market debt and U.S. Treasuries rose 2 basis points to 254, according to JPMorgan Chase and Co. EMBI index.