Emerging stocks advance to 3-month high as Europe concerns ease

Petrobras, Usiminas

Petrobras, as Brazil’s state-controlled producer is known, slumped 2.4 percent after reporting Aug. 3 a loss of 1.35 billion reais ($666 million), trailing analysts’ estimates for adjusted profit of 2.94 billion reais. Usiminas, as the Brazilian steelmaker is known, jumped 7 to a two-month high after Goldman hiked its 12-month price target to 9.8 reais from 8.5 reais.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong gained 1.6 percent, while Taiwan’s Taiex index rose 1 percent.

The Micex Index jumped 1.2 percent in Russia. VTB Group, the nation’s second-biggest lender, increased 4.1 percent. OAO Mechel, Russia’s biggest coking-coal producer, gained 2.3 percent and steelmaker OAO Severstal rose 3.3 percent.

The WIG20 Index rose 1.8 percent in Warsaw. PKO Bank Polski SA, Poland’s largest bank, rallied 1.8 percent after it said first-half net income rose to 1.95 billion zloty ($590 million) from 1.84 billion zloty a year earlier.

Turkey’s ISE National 100 Index gained 0.4 percent, led by a 1.9 percent rise in Turkiye Is Bankasi AS, the country’s biggest bank by assets. The FTSE/JSE Africa All Share Index added 0.6 percent in Johannesburg.

China, India

The Shanghai Composite rose 1 percent, taking its two-day rally to 2.1 percent. China plans to let workers choose for as much as 30 percent of their wages to be paid in the shares of their publicly traded employers. The stock used to pay employees must be acquired from the secondary market, according to draft rules posted on the China Securities Regulatory Commission’s website yesterday.

The BSE India Sensitive Index added 1.3 percent and Vietnam’s VN Index gained 1.2 percent.

Samsung Electronics Co., which got 35 percent of its sales from America and Europe last year, advanced 4.4 percent in Seoul, the most since July 27. The stock has the biggest representation on the MSCI Emerging Markets Information Technology Index, which led gains in the broader emerging-market gauge.

HTC Corp., Asia’s second-largest smartphone maker, fell 6.9 percent in Taipei to its lowest level since February 2010, after forecasting revenue that missed analyst estimates.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries fell one basis point, or 0.01 percentage point, to 323 basis points, according to JPMorgan Chase & Co.’s EMBI Global Index.

Bloomberg News

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