* MSCI EM stocks down 0.3%, currencies down 0.2%
* South African rand rises after three days of losses
* Sentiment hit by weak U.S. overnight data
By Ambar Warrick
April 16 (Reuters) - Emerging markets in Europe and the
Middle East made small gains on Thursday, while their Asian
counterparts fell after the International Monetary Fund forecast
no economic growth in Asia for 2020.
Investors held off large trades before economic data from
the United States and China -- weekly jobless claims and first-
quarter gross domestic product -- which is expected to further
reflect the impact of the coronavirus pandemic.
Dismal retail sales and industrial output from the United
States, released overnight, underscored the toll of curbing
business activity over extended periods, with the readings in
April only set to be worse.
The MSCI's developing world stocks index fell
about 0.3%. Currencies dipped 0.2%.
Some optimism persisted over the coronavirus slowing in its
U.S. and European epicentres, but it still looked as if it would
ravage the global economy in the medium term. The IMF forecast
Asia's annual economic growth would grind to a halt for the
first time in 60 years.
"Any recovery in risk sentiment depends on how quickly
economies can re-open without risking overloading their
healthcare systems and, most of all, not risking any chance of a
secondary spread," said Stephen Innes, chief global markets
strategist at AxiCorp.
"The risk of escalating economic damage is putting enormous
stress on governments under immense pressure to relax
social-distancing measures sooner, rather than later."
South Africa's rand edged up after three days of
losses. Stocks in the country added about 0.5%. Still, the
country was set for a deep recession in 2020, with the
coronavirus serving to further unsettle an already shaky
economy.
The Polish zloty fell against the dollar, while
stocks in the country traded sideways. Inflation in
Central Europe's largest economy declined less than expected in
March, data showed on Wednesday.
The Saudi Arabian riyal traded flat. Stocks in the
oil exporter dropped 1.6% as oil prices recovered from 18-year
lows, although fears remained over waning demand.
China's yuan slipped ahead of the GDP data on
Friday. Stocks inched higher.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Ambar Warrick in Bengaluru, editing by Larry King
)