EMERGING MARKETS-South African turmoil, strong dollar weigh on emerging markets

By Karin Strohecker

LONDON Oct 11 Emerging market stocks posted
their biggest daily losses in two weeks on Tuesday, led lower by
South Korea’s Samsung, while South African assets were hammered
by news about the finance minister’s legal difficulties.

The announcement that South African prosecutors had issued
Finance Minister Pravin Gordhan with a summons in relation to
the establishment of a tax department investigation unit a
decade ago sent the rand down more than 3 percent against
the dollar – its weakest in nearly four weeks.

Debt issued by Africa’s most industrialised nation slipped
to multi-month lows, while the cost of insuring South Africa’s
debt against default jumped to its highest in three months.

Gordhan, highly respected by financial markets, has been at
the centre of a power struggle in the ruling ANC party and his
stand-off with…

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