Emerging-market assets held losses in Asian trading Tuesday, signalling Argentina’s plan to narrow its fiscal deficit and comments from Turkey’s central bank hinting at a rate increase have yet to shore up investors’ confidence.
An MSCI measure tracking developing-nation currencies fell for a second day, losing 0.2 percent as of 11:19 a.m. in Singapore, while the index tracking shares slipping 0.2 percent, after falling for the past four sessions. Indonesia’s rupiah weakened for a sixth day, sinking to a fresh two-decade low.
Argentina’s government announced emergency measures Monday, including new export taxes, after the peso tumbled 26 percent last month. Trading in the currency was too thin to judge if the plan was a success or not, with that market verdict set to come Tuesday. In Turkey, the central bank vowed to reshape its monetary policy stance at a Sept. 13 meeting after consumer inflation accelerated faster than expected in Augus
‘A Penny Short’
Stephen Innes, head of Asia Pacific trading at Oanda Corp. in Singapore:
- Argentina’s measures are “likely a day late and a penny short”
- “These moves are a step in the right direction, but they’re unlikely to be convincing enough to remove currency speculators from the driver’s seat. I guess it’s all down the IMF’s ‘White Knight’ to the rescue. However, we are getting into the realm of unquantifiability which makes the market utterly untradable”
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