Reuters/London
Emerging stocks eased to a one-week low yesterday, underperforming their developed peers, though currencies traded mixed despite the dollar index easing off 11-year highs.
The overall emerging share index fell 0.2%, dragged down by Chinese stocks falling 2.6% on a raft of new initial public offerings that have fanned concerns about tighter liquidity.
In Russia, dollar-denominated and rouble-based stocks rose as much as 1.9%, getting a helping hand from oil rising above $60 per barrel and progress in talks over gas supplies from Moscow to Kiev. The rouble also strengthened against the greenback.
Ukrainian dollar bond prices rose by 0.7-1.5 cents in the dollar and yield spreads over US Treasuries were at their tightest since mid-February after parliament approved a raft of austerity measures on Monday afternoon.
Kiev hopes this will help it clinch a $17.5bn bailout package to pull the country back from the brink of bankruptcy.
Polish stocks eased, while the zloty traded flat against the euro as the central bank started a two-day meeting.
A Reuters poll showed the bank is widely expected to cut rates by 25 basis points to counter a long decline in consumer prices.
