(Bloomberg) -- Emerging markets around the world restored their resilience in a week punctuated by Venezuela's plans for debt restructuring and Turkey's inflation surging to a 13-year high.
The MSCI index tracking emerging-market currencies and stocks rose for the first week in three. U.S. President Donald Trump confirmed that Federal Reserve Governor Jerome Powell is his pick to head the central bank, spurring speculation of a continuation of the current chair Janet Yellen's cautious approach to rate increases.
Highlights for the week ended Nov. 3:
- Venezuela President Nicolas Maduro said the country will seek to restructure its global debt, blaming U.S. financial sanctions for making it impossible to find new financing
- The latest U.S. jobs report showed employers added fewer jobs than anticipated and wage growth missed estimates, even as ISM's gauge for non-manufacturing activities beat estimates
- Chinese President Xi Jinping called for stable China-North Korea ties in a message to Kim Jong Un shortly before Donald Trump makes his first visit to Asia as U.S. president
- China and South Korea agreed to shelve their yearlong dispute over Seoul's decision to deploy a U.S. missile shield
- Asian currencies dominated the top performer positions after data from the region show inflation well under control; Indonesia, Thailand and South Korea consumer prices for October came in at, below or within respective central bank's target range
- South Korea's industrial production rose 8.4 percent exceeding the estimate of 4.8 percent gain in Bloomberg survey; China's manufacturing purchasing managers index fell to 51.6 in October from five-year high of 52.4 in September
- Philippine peso was among the best performers after the Philippines Stock Exchange Index closed at a record high; Taiwan's Taiex index of equities had its highest close in 27 years while data showed gross domestic product expanded better-than-expected 3.11 percent
- Thailand's finance ministry raised economic growth forecast to 3.8 percent in 2017 compared with earlier estimate of 3.6 percent, supported by exports and tourism
- The Turkish lira was the worst performer in the week as a key measure of Turkey's consumer prices that excludes volatile items such as food and energy accelerated to 11.8 percent last month, the highest since January 2004
- Central bank Governor Murat Cetinkaya warned that inflation may rise in October and November
- Ruble is seen remaining at current levels by year-end as there are no serious factors that can affect the exchange rate, Finance Minister Anton Siluanov said
- Currency slipped 1.6 percent for the week; Finance Ministry announces November plan for foreign-exchange purchases
- South Africa's rand extended a three-week loss as bond yields climbed for the third straight week; jobless rate remained at a 14-year high in the third quarter as the continent's most-industrialized economy staged a weak recovery from a recession
- The Gupta family inflated the share price of a company it controlled on its Johannesburg Stock Exchange debut by lending money to a Singapore firm to be used to trade the equities
- Brazilian real was the second-worst performer among emerging currencies tracked by Bloomberg; central bank minutes offered no further clarity on monetary policy, saying that it would refrain from forward guidance and keep its options open as policy makers wind down their biggest easing cycle in a decade
- Real weakened past 3.30, a key level that has supported the currency for almost 4 months
- Argentina sold 2.75 billion euros ($3.2 billion) in international bonds, seeking to capitalize on investor optimism toward a reform-minded government
- Colombian peso weakened; Finance Minister Mauricio Cardenas said the country won't have to make debt issuance in international markets until 2019
- Mexican peso failed to end a seven-week losing streak amid broad-based retreat in emerging-market currencies on Friday. The peso remains range-bound between 19 and 19.30 as overall sentiment is cautious before new round of Nafta talks set to start Nov. 17.
Latin America:
Upcoming data:
Monday, Nov. 6 China 3Q current-account balance Indonesia 3Q GDP Tuesday, Nov. 7 Romania Monetary policy decision Wednesday, Nov. 8 China October trade data Thailand, Poland Monetary policy decision Chile October Inflation Turkey September industrial production Thursday Nov. 9 China October inflation Mexico Monetary policy decision; October inflation Philippines Monetary policy decision Peru Monetary policy decision Malaysia Monetary policy decision, September industrial production Friday, Nov. 10 Mexico September industrial production Russia September trade data Indonesia 3Q current-account balance India September industrial production Colombia Monetary policy minutes Brazil October IBGE inflation To contact the reporters on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net, George Lei in New York at glei3@bloomberg.net, Alex Nicholson in Moscow at anicholson6@bloomberg.net.
To contact the editors responsible for this story: Tomoko Yamazaki at tyamazaki@bloomberg.net, Randall Jensen
©2017 Bloomberg L.P.
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