* China shares close higher on Huawei relief
* India shares fall after hitting record highs
* Turkey's lira down as investors weigh forex move
By Susan Mathew
May 21 (Reuters) - Emerging market shares on Tuesday gave up early gains logged on some relief on the Sino-U.S trade front, while developing world currencies also weakened on fears the protracted trade war may have already begun to impact Asian economies.
Currencies in the developing world .MIEM00000CUS fell across the board as poor economic growth data from Singapore and Thailand dented sentiment and boosted appetite for the dollar. FRX/
MSCI's index of emerging market shares .MSCIEF gave up gains of up to 0.6% to trade flat, even as mainland China shares - index-heavyweights - closed more than 1% higher after Washington temporarily eased trade restrictions imposed last week on China's Huawei. .SS MKTS/GLOB
The trade relief gave a fillip to stocks of other trade reliant economies such as South Korea .KS11 and Taiwan .TWII as well as to commodity giant South Africa's blue-chips index .JTOPI , but some others fell.
Shares in Turkey .XU100 fell 0.8% and the lira TRY= slipped 0.6% after the country's banking watchdog imposed a settlement delay for FX purchases by individuals of more than $100,000. a particularly encouraging sign - people will worry that this is beginning down the road towards capital controls," said Timothy Ash, head of emerging market research at Blue Bay Asset Management.
Indian shares .BSESN .NSEI turned to losses after scaling all-time highs earlier in the session on election optimism. Tata Motors TAMO.NS was the worst performer after it provided a disappointing outlook, taking the broader indexes lower after three strong sessions. .BO Indian rupee INR= fell 0.26% to 69.757 per dollar after Monday's 1% rise posted on exit polls suggesting Prime Minister Narendra Modi could retain power.
Analysts at DBS Group Research warn the rupee will weaken past 70 again because the next government formed will need to get fiscal consolidation back on track and rely on monetary policy to support growth.
Among emerging European currencies, Hungary's forint EURHUF= fell 0.2% to a more than eight-month low ahead of a central bank meeting next week when it is unlikely to tighten policy despite a rise in inflation.
The Polish zloty EURPLN= was flat. Poland's ruling party faces the risk of a defeat from the united opposition in European Parliament elections at the weekend.
For GRAPHIC on emerging market FX performance 2019, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance 2019, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.