Aniket Pujari(Bloomberg) — Developing-world stocks fell on Thursday, driven by technology stocks in Asia, after hedge funds trimmed bullish wagers in the region, having already dumped some bets in the US and Europe.
The MSCI gauge for emerging-market stocks dropped 0.6%, led by Taiwan Semiconductor Manufacturing Co., Alibaba Group Holding Ltd. and Tencent Holdings Ltd. shares in Asia trade. An index for currencies was little changed while the Bloomberg Spot Dollar Index edged higher.
“The recent selloff has been triggered by investor positioning where hedge funds have started reducing risk and realising profits where they have them,” said Rajeev De Mello, portfolio manager at Gama Asset Management SA. “As we approach the end of the quarter and with more significant tariffs signaled for early April, I would expect a further deterioration.”
Goldman Sachs saw the largest decline in hedge fund positions in Asia in four years on Monday. While much of the fall came from developed countries, China dominated the reduction in emerging markets in Asia, led by hedge funds trimming bullish wagers, it added.
Ukraine’s dollar bonds erased intraday gains after Russia said it has expelled Ukrainian troops from the key town of Sudzha in the Kursk region, bringing President Vladimir Putin closer to his goal of completely dislodging Kyiv’s forces from Russian territory.
Eastern Europe currencies also fell as a Putin aid said Moscow doesn’t want a temporary ceasefire with Ukraine, it’s interested in a long-term settlement, according to Interfax.
Serbia’s central bank left the benchmark interest rate unchanged for a sixth month as price pressures persist and the government confronts the biggest political protests in a decade. In Romania, which is also facing continued political turmoil, inflation also unexpectedly edged higher last month.
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