Emerging market indices decline after 6 days of growth

The six-day period of emerging market stock’s growth gave way to their decline, which was caused by heightened concerns about an increase in the new omicron strain infected number, as the worsening epidemiological situation in the world could slow down the global economic recovery. The MSCI stock index dropped 0.5%. Chinese blue chips declined 1.5%, while Hong Kong shares fell 0.8%. It was their reaction to the lockdown that began in the Chinese city of Xian. At the same time, shares of Turkish companies showed an increase of about 1.2% on Wednesday. In addition, during trading on December 29, the South African stock index rose. This week’s data from exchanges indicates that the MSCI Emerging Markets Index may end up about 5% lower this year, as opposed to the S&P 500, which rose more than a quarter this year. Emerging market currencies also declined on Wednesday. So, by 3.8% – to 12.24 dollars – the Turkish lira fell, having lost 12% since the beginning of the week.

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Arseny Kudrin

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