(MENAFN- Gulf Times) Chinese shares fell for a fourth straight session yesterday on concern over a slowing economy, weighing on emerging market stocks overall, with some currencies under pressure before a Federal Reserve meeting on interest rates.
Bourses across much of Asia suffered as China mainland shares extended their losses, now down 6% on the week, despite data that showed Beijing cranked up its spending in August to revive flagging economic growth. MSCI's broadest emerging market stock index € which has fallen more than 15% since the start of the year € nudged lower on the day.
Some currencies also came under pressure as investors waited to see whether the Fed will raise US interest rates on Thursday, after a recent global market rout.
Meanwhile, the Bank of Japan warned that slowing emerging market demand was putting further strains on its economy.
Indonesia's rupiah reached a 17-year low against the dollar as trade data pointed to weak growth in Southeast Asia's largest economy. Turkey's lira gained on the day but hovered near Monday's record low as investors geared up for another indecisive election outcome on November 1.
"Even if we put aside the Fed, we still have this political uncertainty and we are seeing an inertia in monetary policy," said Murat Toprak, an FX strategist at HSBC.
"Historically ... we have seen the central bank be a bit more active when the currency falls, but despite the record lows for the Turkish lira, the reaction of the central bank has been extremely limited."
South Africa's rand € which has weakened almost 14% since the start of the year - gained 0.5% on the day after better-than-expected current account data.
And Russia's rouble strengthened 1%, getting a lift from rising Brent crude prices.
Across central and eastern Europe, stocks fell and currencies were mixed. Poland's zloty, the Czech crown and the Romanian leu all weakened against the euro.
Yet Hungary's forint was at its strongest in almost two weeks while bond yields dropped as markets continued to ignore Europe's migrant crisis. Hundreds spent the night in the open on Serbia's border after a crackdown by Budapest.
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