* Rand volatility nears 3-mth highs<\/p>\n
* Baidu, Alibaba and Tencent fall on new regulatory woes<\/p>\n
* Oil weakness hits Russian rouble<\/p>\n
July 19 (Reuters) – Emerging market stocks and currencies tumbled on Monday as investors rushed to safe havens on rising COVID-19 cases around the globe, while fears of stricter regulations weighed on major Chinese technology stocks.<\/p>\n
MSCI\u2019s index of emerging market (EM) currencies dropped 0.4% and was headed for its worst day in a month, with Turkey\u2019s lira and the South African rand leading losses across Europe, the Middle East and Africa (EMEA). Both currencies fell about 0.7%.<\/p>\n
Losses in heavyweight Chinese technology stocks dragged MSCI\u2019s EM stock index 1.3% lower. Most bourses in EMEA fell between 0.6% and 1.2%.<\/p>\n
Alibaba and Tencent, two of the top three stocks on the MSCI index, fell about 3% and 2.5%, respectively.<\/p>\n
A Shanghai court at the weekend posted a list of \u201ctypical unfair competition cases\u201d involving several major Chinese tech companies, including Alibaba, Tencent, and search engine Baidu which dropped 3.8%.<\/p>\n
But rising virus cases, particularly of the highly infectious Delta variant, cast a pall over most risk-driven assets, and encouraged flows into safe havens such as the dollar and the Japanese yen.<\/p>\n
\u201cIncreasing nerves about the delta-variant COVID-19 are sapping recovery hopes across the Asia-Pacific… you can choose your poison on that front globally, with the U.S., Europe, and the UK also experiencing rises in cases,\u201d Jeffrey Halley , Senior Market Analyst, Asia Pacific, at OANDA, wrote in a note.<\/p>\n
South Africa\u2019s rand fell 0.7% after wild swings over the past few sessions, as the weak risk appetite exacerbated concerns over civil violence in the country.<\/p>\n
One-month dollar options on the rand, a common gauge of volatility, hovered just below three-month highs.<\/p>\n
Turkey\u2019s lira was set to snap a six-day winning streak. The currency has been among the top performing EM units over the past few weeks with a yield of 19% – the highest in the world – and the prospect of near-term stable monetary policy attracting investors.<\/p>\n
Minutes of the central bank\u2019s meeting last week will be scrutinised for further affirmation of steady policy.<\/p>\n
Turkish markets will be closed for the rest of the week.<\/p>\n
Russia\u2019s rouble fell 0.4%, tracking a drop in oil prices after OPEC+ reached a deal to increase supply. Fears of waning demand, due to a rise in virus cases, have also rattled oil markets in recent weeks.<\/p>\n
Central European currencies retreated against the euro and the dollar.<\/p>\n
For GRAPHIC on emerging market FX performance in 2021, see tmsnrt.rs\/2egbfVh For GRAPHIC on MSCI emerging index performance in 2021, see tmsnrt.rs\/2OusNdX<\/p>\n
For TOP NEWS across emerging markets<\/p>\n
For CENTRAL EUROPE market report, see<\/p>\n
For TURKISH market report, see<\/p>\n
For RUSSIAN market report, see<\/p>\n