Emerging-market stocks retreated from a four-month high, trimming their weekly advance, as India’s banks drove a slump in financial shares after the nation’s central bank unexpectedly lifted interest rates.
India’s rupee strengthened beyond 63 per dollar after former U.S. Treasury Secretary Lawrence Summers withdrew from the list of people being considered for the Federal Reserve chairman’s post. Government bonds advanced.
Emerging-market stocks rose for the first time in three days, led by Brazilian shares, after higher commodities prices lifted producers. South Korean shipbuilders jumped, while Poland’s zloty paced a rally in currencies.
Estonia, the least-indebted European Union member, may be the standard against which other euro candidates are measured as the monetary union moves ahead with enlargement after committing almost $1 trillion to defend its currency from Greek-induced hemorrhaging.
The Turkish lira, which trailed emerging market currencies from the Brazilian real to the Russian ruble last year, is attracting bullish recommendations after first-quarter economic growth approached that of China.
Eastern Europe’s economic recovery may be scuttled by any Greek debt restructuring, which would curb lending by western banks and undermine investor bets that have propelled the region’s stocks, bonds and currencies.