Emerging stocks rise to nine-month high on China policy, U.S. talks

Emerging-market stocks rose for a fifth day on speculation China will take steps to boost domestic consumption, while U.S. lawmakers arranged meetings to avert budget cuts threatening growth in the world’s largest economy.

Citic Securities Co. and Haitong Securities Co. led Chinese brokerages higher after the country’s regulator said it will ease bond financing for securities firms. Eletropaulo Metropolitana SA jumped to a two-month high to lead gains Sao Paulo. OMV Petrol Ofisi AS, Turkey’s biggest fuel retailer, rose the most in almost five months after receiving approval to sell a unit.

The MSCI Emerging Markets Index added 0.5 percent to 1,054.47 as of 10 a.m. in New York, poised for the highest close since April 3 and extending a sixth weekly gain to 1.1 percent. China may introduce measures to boost consumption in areas such as autos, household electronics and solar, the China Securities Journal said. Congressional leaders plan to meet with President Barack Obama today and House Republicans will convene Dec. 30 as lawmakers work to avoid the more than $600 billion in spending cuts and tax gains scheduled to start in January.

“Investors believe differences over the U.S. budget issues will be resolved soon,” Kim Dae Young, a Seoul-based fund manager at KB Asset Management Co., which manages about $28 billion in assets, said by phone. “Policies from China’s new leadership are likely to match investors’ expectations.”

The developing-nations gauge has risen 15 percent this year, beating the 13 percent increase in the MSCI World Index of developed countries. The emerging-markets gauge trades at 12.1 times estimated profit, compared with the MSCI World’s 13.7, according to data compiled by Bloomberg.

Brazil, Russia

Brazil’s Bovespa Index gained 0.2 percent, the first advance in four sessions. Preferred shares of Eletropaulo, Brazil’s largest power distributor, jumped 4.9 percent to the highest price in two months.

Banco Bradesco SA, Brazil’s second-biggest bank by market value, increased the most in a week after Brazil’s central bank cut reserve requirements for lenders to spur investments in Latin America’s largest economy.

Benchmark indexes in Hungary and Romania rose. Russia’s 50- stock Micex Index fell 0.2 percent as Urals crude, Russia’s main export blend, declined. OAO Mostotrest, a bridge and road builder, was the worst performer on the index, dropping 7.3 percent. OAO Aeroflot, Russia’s biggest airline, rose 2.8 percent to the highest price in three months.

The Istanbul Stock Exchange National 100 Index rose to a record for a fourth day. OMV Petrol jumped 6.6 percent, the most since Aug. 8, after the anti-trust board gave approval to sell its 100 percent stake in Petrol Ofisi Arama Uretim Sanayi & Ticaret AS to Tiway Oil BV.

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