Emerging Markets Wobble Amid Disappointing Chinese Stimulus and Turkish Resilience

Emerging market currencies and stocks experienced a downturn due to China's weak stimulus and data, though Turkish stocks reached a one-month high. MSCI's index fell 0.7%, and currencies lost 0.3% against the dollar. President Erdogan's policies and potential U.S. cabinet choices are closely watched amid global economic shifts.

In Monday's trading, emerging market currencies and stocks encountered a downturn, influenced by China's disappointing stimulus measures and lackluster data that hampered market sentiment. Despite this, Turkish stocks defied trends, achieving a one-month high as MSCI's index that tracks developing market stocks declined by 0.7%, and a currency gauge dipped by 0.3% against a stronger dollar.

The market experienced volatility in the wake of the U.S. election, with last week's reports showing a 0.26% currency decline. In Hong Kong, stocks dropped by 1.4% to a three-week low, driven by trader dissatisfaction with China's newly announced $1.4 trillion debt package lacking direct consumer stimulus, seen as vital for the global economy's second-largest player.

Further geopolitical tensions loom as markets anticipate potential cabinet members for Donald Trump, which could impact trade, immigration, and security policies. Analysts warn of adverse effects on developing economies, prompting companies to move factories from China to Southeast Asia. In Turkey, stocks continued to rise, as President Erdogan affirmed his support for economic measures aimed at easing price pressures amidst monetary policy concerns.

(With inputs from agencies.)