EMERGING MARKETS — Tech selloff drags MSCI stocks index to two — month low
Stocks index weighed by Asia selloff; EM equities elsewhere rise AI investment props up global growth; war, debt threaten outlook - IMF Senegal close to final resolution with debtors, G24 director says Romanian inflation rises more than expected, political crisis, drought cloud outlook By Johann M Cherian Oct 13 (Reuters) — MSCI's emerging markets benchmark slid to a two-month low on Tuesday as a tech selloff gripped heavyweights Korea and Taiwan, even as the International Monetary Fund said artificial intelligence could boost developing economies at its conference in Bangkok. The index tumbled 2% to its early August low, weighed by a 1.9% fall in Taiwan and a 5.5% tumble in South Korea. Currencies of both countries also weakened about 0.6% each. Analysts pointed to rising concerns over Chinese competition worries as a report said memory chip giant ChangXin Memory Technologies (CXMT) reported “key progress” on a new cell architecture to boost memory density, an innovation that competitors such as Samsung Electronics and SK Hynix are also working on. Shares of the two Korean companies fell 7.4% and 10%, respectively, while the Kospi's volatility index spiked nearly 8 points, its big
Stocks index weighed by Asia selloff; EM equities elsewhere rise AI investment props up global growth; war, debt threaten outlook - IMF Senegal close to final resolution with debtors, G24 director says Romanian inflation rises more than expected, political crisis, drought cloud outlook By Johann M Cherian Oct 13 (Reuters) — MSCI's emerging markets benchmark slid to a two-month low on Tuesday as a tech selloff gripped heavyweights Korea and Taiwan, even as the International Monetary Fund said artificial intelligence could boost developing economies at its conference in Bangkok. 5% tumble in South Korea. 6% each.
Analysts pointed to rising concerns over Chinese competition worries as a report said memory chip giant ChangXin Memory Technologies (CXMT) reported “key progress” on a new cell architecture to boost memory density, an innovation that competitors such as Samsung Electronics and SK Hynix are also working on. 4% and 10%, respectively, while the Kospi's volatility index spiked nearly 8 points, its biggest one-day jump since March this year. "This technology does not immediately challenge... SK Hynix’s lead in high — bandwidth memory," John Plassard, head of investment strategy at Cite Gestion said.
" Tuesday's impact also reflected how concentrated the MSCI benchmark index has become in just a few stocks, as equities in India and South Africa were up about 1% each, while those in central and eastern europe and Turkey were marginally higher. Ai - The Big Growth Driver The IMF said that AI investment is helping offset the energy shock from the war in the Middle East and will help the global economy top 3% real GDP growth this year. However, mounting debt concerns and spiking yields are a drag. One economy grappling with the aftermath of unreported debt is Senegal.
The director of the Group of 24 developing nations, Iyabo Masha, said the African country is close to a final resolution with its debtors. The country's hard-currency bonds were marginally higher. On the flip side, Ukraine's international bonds dropped for a second straight day. The country said Russia hit at least six energy targets during deadly airstrikes, showing it had no interest in an energy ceasefire announced by US President Donald Trump.
3%, while the leu was flat as traders parsed hotter-than-expected September inflation data, lifted by limited power supply after a drought and a weaker currency. The country is also battling a political crisis. 5% at a one-month peak after fresh central bank measures to alleviate pressure on the Asian currency. However, the move weighed on liquidity as several lenders held back on quoting dollar-rupee forwards.
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