Friday, April 5, 2013

Emerging Stocks Tumble: China leads BRICS down

    1. Emerging Stocks Tumble as China Leads BRICs Down 10% From Peak
      Businessweek ‎- 2 hours ago
      Emerging-market stocks sank to a four-month low, with the MSCI BRIC Index (MXBRIC) sliding 10 percent from this year's peak as U.S. ...

  2. Emerging Stocks Tumble as China Leads BRICs Down ... - Bloomberg

    www.bloomberg.com/.../emerging-stocks-fall-as-bric-index-slumps-1...
    10 hours ago – Emerging-market stocks sank to a four-month low, with the MSCI BRIC Index sliding 10 percent from this year's peak as U.S. employers hired ...

  3. Emerging Stocks Drop on China Earnings as Brazil Tumbles ...

    www.bloomberg.com/.../emerging-stocks-drop-a-second-day-on-chi...
    3 days ago – Emerging stocks fell a second day as disappointing Chinese earnings and tensions on the Korean peninsula overshadowed gains in eastern ...

    Bloomberg News

    Emerging Stocks Tumble as China Leads BRICs Down 10% From Peak

    By Santanu Chakraborty and Lyubov Pronina on April 05, 2013

    Companies Mentioned

    • MBT
      Mobile Telesystems OJSC
      • $19.17 USD
      • -0.73
      • -3.81%
    Market data is delayed at least 15 minutes.
    Emerging-market stocks sank to a four-month low, with the MSCI BRIC Index (MXBRIC) sliding 10 percent from this year’s peak as U.S. employers hired fewer workers than forecast, bird flu concerns hit Chinese airlines and capital outflows from South Korea accelerated.
    China Southern Airlines Co. (1055) fell 8.5 percent in Hong Kong on concern the widening infections may curb travel. Hyundai Motor Co. (005380) slid to a 17-month low in Seoul. Foreign funds unloaded a net $1.2 billion of Kospi index (KOSPI) shares this week, preliminary data from the stock exchange show, as the risk of conflict with North Korea spurred outflows. Turkish bond yields fell after the prime minister said rates were too high.
    The MSCI Emerging Markets Index (MXEF) slipped 1.1 percent to 1,006.59 at 1:41 p.m. in London, its fifth day of declines. The gauge lost 2.7 percent this week. The MSCI BRIC Index headed for the threshold that some investors identify as a correction. Six people have died from a new strain of bird flu in China. North Korea said yesterday it passed a law authorizing “counter- actions” against U.S. aggression including a nuclear strike.
    “Global funds are skeptical in investing in the emerging markets amid the political and health concerns,” Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance Co. in Mumbai, said in a phone interview today. “Markets will start factoring in the fundamentals once the current headwinds disappear.”

    U.S. Payrolls

    Payrolls in the world’s biggest economy grew by 88,000 workers last month, the smallest in nine months, after a revised 268,000 gain in February that was higher than first estimated, Labor Department figures showed today in Washington. The median forecast of 87 economists surveyed by Bloomberg projected an advance of 190,000. The jobless rate fell to 7.6 percent from 7.7 percent.
    The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong tumbled 3.1 percent, the steepest loss since July 23. South Korea’s Kospi index fell 1.6 percent, capping the biggest weekly loss since May.
    Turkey’s two-year note yield fell nine basis points to a two-week low after Prime Minister Recep Tayyip Erdogan said that even interest rates of 6 percent are too high.
    Benchmark stock gauges in Turkey, Russia, Hungary and South Africa dropped at least 0.6 percent.
    OAO MegaFon, Russia’s second-largest mobile-phone operator, sank 8 percent after JPMorgan Chase & Co. cut the stock to neutral on “pricey” valuations. OAO Mobile Telesystems (MBT) slumped 3.8 percent on concern the country’s biggest mobile phone provider will lose market share.

    Consumer Stocks

    VTB Group, Russia’s second-biggest lender, said yesterday it had completed a $3.55 billion acquisition of Swedish Tele2’s wireless business in Russia, fueling speculation the unit will be sold to state-run OAO Rostelecom.
    VTB dropped 1.9 percent and Rostelecom slipped 0.7 percent in Moscow.
    Trading volumes were at least 30 percent higher than the 30-day average for benchmark indexes in Russia and Turkey, data compiled by Bloomberg show.
    All the 10 industry groups in the MSCI Emerging Markets Index dropped, led by a gauge of consumer discretionary companies. The broader index has lost 4.7 percent this year, compared with a 6.2 percent gain in the MSCI World Index (MXWO) of developed-country stocks. The developing-nations measure trades at 10.2 times estimated 12-month earnings, compared with the MSCI World’s multiple of 13.3, data compiled by Bloomberg show.

    Political Risk

    Emerging funds drew inflows of $0.54 billion in the week ended April 3 compared with total outflows of $3.6 billion in the last three weeks, Morgan Stanley said in a report today.
    Hyundai Motor and Kia Motors Corp. (000270), the biggest South Korean automakers, retreated at least 4.4 percent, extending yesterday’s slide that was triggered by their plan to recall vehicles in the U.S. for electronic defects. The shares also fell today on concern a weaker yen will hurt the competitiveness of South Korea’s exporters against their Japanese rivals.
    The won dropped 0.7 percent to a seventh-month low as the risk of conflict with North Korea spurred capital outflows.
    “Geopolitical risk from the North Korean threat is likely to weigh on the South Korean won for an extended period of time,” said Suh Dae Il, an analyst at KDB Daewoo Securities Co. (006800) in Seoul.

    SARS Remembered

    Thailand’s SET Index tumbled 2.6 percent, the lowest level since March 22. Heavy selling by foreign investors yesterday surprised the market, Sukit Udomsirikul, head of research at Maybank Kim Eng in Bangkok, said by e-mail. Overseas investors sold a net 3.08 billion ($105 million) of Thai equities yesterday, the biggest outflow since March 20, according to exchange data compiled by Bloomberg.
    China Southern, the country’s biggest domestic carrier, tumbled the most since Jan. 16, 2012. Air China Ltd. sank 9.8 percent and China Eastern Airlines Corp. lost 8.3 percent.
    Previous outbreaks of severe acute respiratory syndrome, or SARS, and bird flu had emptied planes and caused Asian airlines to post losses.
    “People are worried the new bird flu would develop into a disaster like SARS,” Davin Wu, a transportation analyst at Credit Suisse Group AG, said by phone. “At least leisure travelers will be cutting back their trips to China.”
    Malaysian glove maker Supermax Corp. (SUCB) gained 3.6 percent in Kuala Lumpur on speculation the outbreak will boost demand. Rival Top Glove Corp. added 3.1 percent. Shanghai Fosun Pharmaceutical Group Co. (600196) advanced 3.9 percent in Hong Kong and Shanghai Pharmaceuticals Holding Co. rose 1.3 percent.
    To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net; Lyubov Pronina in London at lpronina@bloomberg.net
    To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
       
    end quote from:

    Emerging Stocks Tumble as China Leads BRICs Down 10% From Peak


    This North Korean craziness is causing serious problems to Chinese and South Korean Business interests and likely will until it is resolved one way or another. Unfortunately, I don't really expect a quick resolution to this unless it is with missiles or soldiers. I think North Korea is collapsing as  nuclear power and can no longer feed it's people. This is going to be hard to watch either way.
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