Eco stocks expected to end 2% lower on Friday as fears of a possible default

EM stocks expected end the week around 2% higher than HBI, to end around 2% lower.

Evergrande should not bet on the bailout - Global Times editor.

What will be the consequences of new Russian tax on Russian stocks?

Sept 17 Reuters - Emerging market stocks rose on Friday for the first time this week as Chinese shares recovered after a bruising week, although concerns about a likely default by indebted property developer Evergrande kept a lid on gains.

EM. index MSCI hit an all time high in the session before recouping in the subsequent three weeks before the lows were received by the market. It was last up 0.4% as heavyweight Hong Kong tech stocks rose 1% and 3.2%, respectively.

For the week the EM index is set to lose around 2%, its worst weekly show in a month, as fears of a contagion from a likely Evergrande default, worries over global growth and Beijing's tightening grip on businesses hammed risk sentiment.

The shares were set for worst week ever, down nearly 30%.

We suspect it would take a policy misstep for an Evergrande default to cause a sharp slowdown in China's economy, said Simon MacAdam, senior global economist with Capital Economics.

In a hard-landing scenario, several emerging markets are vulnerable. India shares marked a eighth consecutive session of record highs thanks to fiscal measures.

Russia's MOEX was now more than 1% away from all-time highs, with losses on the day being led by some miners after sources say Russia's finance ministry proposed setting a mineral extraction tax.

The Rupees rouble was 0.3% higher against the Dollar in the Moscow exchange rate, while it traded flat with the Interbank rate as citizens go to polling stations for electing a new parliament. Ruling the Ruling United Russia is expected to win despite ratings slump.

Elvira Nabiullina warned on Friday that inflation in the country could hit 7% this month and move back towards the target of 4% only in the second half of 2022. Nabiullina is considering higher interest rates in the next meeting, said the bank. Yesterday saw the fifth rate hike in May this year to 6.75%.

The Turkish Lira hit a five week low, down 0.6%, prolonging the previous session's 1% slide. President Erdogan said Turkey will bring inflation down as soon as possible. The main inflation rate is currently at 19.25%, above the annual interest rate of 19%.

The Central Bank meets next week with investors worried about a imminent policy rate hike as Governor Sahip Kavcioglu struck a dovish tone amid pressure from Erdogan to cut rates.