LONDON, Feb 1 (Reuters) - Upbeat manufacturing surveys
pushed the Hungarian forint to three-week highs on Friday and
boosted Turkish assets, with the Istanbul stock market
rebounding off the four-week lows hit earlier this week.
Broader emerging share prices were flat and the
Polish and Czech currencies slipped as data
in those countries suggested manufacturing was still shrinking.
The Hungarian Purchasing Managers' Index jumped to 55.9 in
January from a revised 49.1 in December. A reading above 50
signals growth in manufacturing, significant for the
The forint rose for the fourth straight day, and
was on track for the biggest weekly gain since last July, buoyed
by the data as well as hopes the central bank could follow a
more cautious monetary policy than expected.
However the zloty and the Czech crown
weakened as the PMI remained stuck below the 50 mark, although
the sector contracted at a slower pace than the previous month.
Analysts at Capital Economics wrote the PMIs had shown the
first signs of green shoots, with Turkey benefiting the most but
even Poland and Czech Republic showing improvement,
'New export orders component picked up in both countries,
suggesting that the uptick in the latest leading indicators from
key euro-zone exports markets, particularly Germany, is
translating into stronger demand,' they told clients.
Turkish manufacturing activity hit a 22-month high in
January as new orders and purchasing activity grew, signaling a
recovery in economic conditions and pushing the
main Turkish stock index up 1.28 percent.
The lira strengthened 0.17 percent to the dollar.
'You should expect the lira to depreciate in the long term
against the G8 currencies for the simple fact that you still
have a relatively large current account deficit and relatively
high inflation,' said Lars Christensen, head of emerging markets
at Danske Bank.
South African stocks rose to record highs for the
third time this week on a renewed appetite for risky assets.
Emerging market equity funds received inflows of $3.6
billion in week to Jan 30, the 21st consecutive week of inflows,
according to EPFR Global.
The Russian stock market was lifted 0.56 percent by
metal and mining stocks. Bonds showed little reaction to news of
a possible delay in a sovereign Eurobond issue.
Markets are awaiting U.S. jobs data at 1330 GMT.
(Reporting By Dasha Afanasieva; Editing by Chris Pizzey, London
MPG Desk, +44 (0)207 542-4441)
(Emerging Markets Prices from Reuters Equities Latest Net Chg % Chg % Chg on year Morgan Stanley Emrg Mkt Indx 1068.99 -0.02 -0.00 +1.31 Czech Rep 1016.56 -4.88 -0.48 -2.13 Poland 2501.26 +8.50 +0.34 -3.16 Hungary 19365.64 -2.38 -0.01 +6.56 Romania 5594.87 +113.58 +2.07 +8.65 Russia 1634.65 +12.52 +0.77 +3.71 South Africa 36372.55 +269.10 +0.75 +4.53 Turkey 79794.54 +1011.07 +1.28 +2.03 China 2419.02 +33.60 +1.41 +6.61 India 19781.19 -113.79 -0.57 +1.82 Currencies Latest Prev Local Local close currency currency % change % change in 2013 Czech Rep 25.)
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