Emerging markets beaten back in August as China chills the mood

NEW YORK/LONDON, Aug 31 - Higher global interest rates, difficulties in China, a stronger dollar plus another coup in Africa this week have slammed the brakes on what is still a solid run for emerging market assets this year.1/SHOCK FOR THE STOCKS MSCI's 24-country emerging markets stocks index is down 6% this month. That is its sharpest drop since February and has also pushed it into the red for the quarter.

Another big interest rate cut in Hungary, meanwhile, boosted its stocks and Egypt's have powered higher too. Many countries' share markets do well when inflation is surging as locals often pump their money into equities rather than watch it get eaten by inflation. South Africa's rand is down, Turkey's lira is up and China's yuan and Malaysia's ringgit are down for a fourth month in the last five.

3/PROPERTY PROBLEMS China's property market woes have come back with a bang amid fears that another of its biggest developers, Country Garden, is on the brink of default. 4/FLYING TURKEY Turkey's markets have been encouraged by this month's super-sized rate hike that confirms, for now at least, that the country has returned to the kind of orthodox economics spectacularly absent over the last two years.

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