Turkish stocks hit record high

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TurkishTrader REUTERS A trader works on the floor of the Istanbul Stock Exchange.

Emerging stocks hit their lowest in six days on Tuesday, rescinding m ore of their US budget deal-induced gains, though Turkish stocks hit record highs for a second day.

Risky emerging assets have benefited from the New Year deal to avoid huge tax rises and spending cuts in the world's largest

economy, but the start of the US corporate earnings season is making investors nervous.

Benchmark emerging equities fell 0.3 percent to six-day lows, with Chinese stocks dropping from Monday's near-seven-month highs on weakness in the property and financial sectors.

Turkish stocks rose nearly 1 percent to fresh record highs, after soaring nearly 60 percent last year as investors favoured the country as an alternative to the euro zone. South African stocks hovered below the previous day's record highs.

Russian stocks jumped 3 percent after a week of holidays, playing catch-up on the initial global euphoria about the US budget deal.

Egypt's pound hit record lows after the central bank offered $60 million to banks at a foreign currency auction, under a new system aimed at curbing a decline in foreign exchange reserves.

The pound has plummeted 4 percent since the auction system was introduced on December 30.

Egyptian stocks hit two-month highs, however, and the country's debt insurance costs fell, according to Markit.

The Czech crown touched its lowest in almost two months against the euro on concern that policymakers will use currency interventions as the next tool to ease monetary policy.

The Romanian leu rose 0.3 percent towards the previous day's eight-month highs, reached after the central bank left interest rates unchanged at 5.25 percent.

Romania's debt insurance costs are at their lowest since August 2008 in the five-year credit default swap market, according to Markit, following a recent election which allayed worries about the country's IMF-led aid deal. - Reuters


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