EM Morning Roundup
China Slumps On IPO Concerns
June 19, 2014
A dovish Federal Reserve Chair Janet Yellen did not save the emerging markets equities from falling today. The Iraqi military is still fighting with the ISIS militants over Iraq’s largest refinery. The Obama administration is still weighing its options, but signaled that it wants Iraqi Prime Minister Nouri al-Maliki, who is a Shiite, to resign, convinced that Mr. al-Maliki is unable to reconcile with the Sunni and Kurdish minorities.
The Hong Kong Hang Seng Index fell 0.06%. The Shanghai Composite Index slumped 1.5% on concerns that new IPOs will dilute the market. Regulators are restarting the IPO process after a four-month halt.
India‘s S&P BSE SENSEX Index lost 0.2% as Brent crude stays elevated above $114 per barrel.
Taiwan’s TAIEX Index rose by another 0.4% to the highest level since November 2007, as investors anticipate the next iPhone. Wall Street Journal reports:
Global money managers have pumped in $9.6 billion so far this year, more than three times the $2.7 billion total for all of 2013. It is the fastest pace since 2009, and puts Taiwan second only to India among Asian destinations for foreign funds.
With recovering U.S. and European economies and new gadgets slated from Apple Inc. and Sony Inc. this year, Taiwan’s technology component makers are benefiting from their central role in the global electronics supply chain.
China’s largest property developer China Vanke is set to list on Hong Kong next Wednesday. Vanke will convert its Shenzhen B-shares, which foreigners are allowed to invest in, into Hong Kong H-shares.
Brazil announced its latest measures, including subsidized lending and tax credits to exporters, to boost industries that yet to benefit from earlier, costlier efforts.