Weekly Brief: Key Economic Highlights Across Top Emerging Nations

By Malvika Gurung

Investing.com -- The ongoing week witnessed a softer-than-expected July consumer inflation data recorded in the US, easing to 8.5% from a 40-year peak of 9.1% in June, indicating the Fed might adopt a less aggressive monetary tightening going forward.

Markets globally took positive cues from a soft US inflation print, rising on Thursday. Listed below are highlights of key financial events and developments that occurred during the week across the top three emerging nations - India, China and Russia.

India

• Indian equity benchmark indices Nifty50 and Sensex traded in the green on Friday, set to end higher for the fourth consecutive week and register the longest winning streak on Dalal Street since January.
• The country’s CPI inflation data for July will be released on Aug 12 and a Reuters poll expects the figure to ease to an annual 6.78% in the month from 7.01% in June, following a decline in fuel and food prices.
• Foreign investors have turned net buyers in July 2022, with momentum continuing in Aug too, after incessantly offloading Indian shares from Oct-Jun. Over the past 10 days, FIIs have invested Rs 12,190 crore in Indian equities.
• Global brokerage Morgan Stanley (NYSE:MS) expects India to emerge as the strongest Asian economy in 2022-23, contributing a whopping 28% to the growth in Asia and 22% to global growth in the year.
• The country’s top private lender ICICI Bank (NS:ICBK) has exceeded the market capitalization of Rs 6 lakh crore in the week, becoming the 7th Indian company to hit the revered mark.

China

• The second-largest economy’s consumer price index hit a two-year peak in July, led by a sharp rise in pork prices, jumping 20.2% YoY and 25.6% compared to June.
• The producer inflation tumbled to a 17-month low in July, rising 4.2% YoY despite global cost pressures, as slower domestic construction weighed on raw material demand.
• Commenting upon the performance and health of Asian markets at CNBC, Eddy Loh, the chief investment officer at Maybank Group Wealth Management said that the valuations of Asian equities are not expensive, however, the growing downside risks, particularly in China will maintain pressure on the performance of the overall market.
• Recurring Covid-19 lockdowns in the country, along with tensions with the US on Nancy Pelosi’s trip to Taipei, among others, are weighing on Chinese markets, with the Shanghai Composite index trading in the red on Friday. 

Russia

• Transneft (MCX:TRNF_p), the state-controlled pipeline operator, stated that Russian oil supplied to three European countries - Czech Republic, Slovakia and Hungary, through Ukraine has been halted due to failure in transit payment, on account of sanctions.
• MKPAO (MCX:RUAL), the world’s second-largest aluminium company’s production costs in H1 2022 surged 33% to $2,028/tonne due to Western sanctions on the Russian economy. Its profit and net income declined during the period.
• Kirill Tremasov, director of the monetary policy department of the Bank of Russia has said that a fixed ruble exchange rate could deprive the Russian economy of sovereignty.
• The MOEX Russia traded higher on Friday, while analysts warned that a potential profit booking could weigh on domestic shares ahead of an expected rise in selling pressure next week, as the country begins converting GDRs into shares.