Emerging stocks jump as BRICs set for bull market on U.S. budget

‘Avoid a Recession’

The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong advanced 4 percent, the most among Asian emerging-market gauges. The BSE India Sensitive Index climbed 0.7 percent to a two-year high, led by Bajaj Auto Ltd., which gained 3.1 percent, as its December sales surged. Russia’s equity market was closed for holidays.

“Investors are positioning in emerging markets for the coming year, encouraged by the removal of the U.S. fiscal cliff issue,” said Paul Joseph Garcia, who helps manage about $18.3 billion as senior vice president at BPI Asset Management Inc. in Manila. “The global scenario isn’t going to be as bad as previously imagined since this measure will help the U.S. avoid a recession.”

Commodity producers rallied in Johannesburg, leading the FTSE/JSE Africa All-Share Index 2.1 percent higher to the highest level on record. Oil companies helped lift Poland’s WIG20 Index up 1.7 percent, and Dubai’s DFM General Index surged 2.7 percent.

Turkey, Malaysia

The Czech Republic’s PX Index rose 2.6 percent to the highest level since August 2011, led by television channel operator Central European Media Enterprises Ltd., which increased 9 percent.

Turkey’s Istanbul Stock Exchange National 100 Index rose 1.8 percent to a record. Zorlu Enerji Elektrik Uretim AS climbed 14 percent, the biggest rally since Sept. 2009. The Istanbul- based power utility said Dec. 31 it will acquire power producer Zorlu Dogal Elektrik Uretimi from parent Zorlu Holding and group firms.

The FTSE Bursa Malaysia KLCI Index declined 0.8 percent with trading volumes about 24 percent lower than the 30-day average. The measure snapped five days of gains that pushed valuations to a two-year high. Pakistan’s KSE 100 Index sank 1.8 percent, the most in 14 months. A planned rally by a religious scholar calling for electoral reforms was endorsed by a coalition partner of the ruling party yesterday.

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