Emerging-market stocks rose for a fourth day, the longest advance since October, as Vale SA to OAO Gazprom drove a rally in commodity producers. Turkey’s Borsa Istanbul 100 Index led gains among global equity gauges.
The MSCI Emerging Markets Index added 1.2 percent to 969.74 at 11:05 a.m. in New York. Turkey’s stock benchmark jumped 4.2 percent as lenders surged after the central bank said it may consider paying interest on a portion of their required reserves. Brazil’s Ibovespa increased for an eighth day as iron- ore producer Vale climbed, while Gazprom led a rally in Russia’s Micex Index and India’s S&P BSE Sensex rose to a record.
Equities joined a global advance after a report showed U.S. durable-goods orders, or items meant to last at least three years, increased more than forecast. Russian markets are returning to levels seen before President Vladimir Putin’s decision to annex Ukraine’s Crimea region sparked the worst standoff between Russia and the U.S. since the Cold War.
“If you believe the U.S. and other developed markets are going to have a good year with respect to economic growth, you need to come to the conclusion that some of that is going to spill over into emerging markets as well,” Wayne Lin, a money manager at Baltimore-based Legg Mason Inc., which oversees $695 billion, said by phone. In addition to that, concern the crisis in Ukraine would escalate has “abated somewhat.”
The iShares MSCI Emerging Markets Index exchange-traded fund rose 1 percent to $40.22, the highest in two months. The premium investors demand to own emerging-market debt over U.S. Treasuries slipped 0.01 percentage point to 309 basis points, according to JPMorgan Chase & Co.
Turkish stocks climbed to a two-month high and bonds rose as policy makers are considering interest payments for the lira portion of lenders’ required reserves. Turkiye Garanti Bankasi AS and Akbank TAS advanced at least 5.5 percent.
Russia’s ruble strengthened for a fourth day and stocks advanced to the highest level in three weeks as investors wagered the crisis in Ukraine may be easing. Gazprom extended a two-day jump to 7.6 percent.
Brazil’s Ibovespa was set for the longest rally since August as Vale gained amid optimism global growth will quicken. Airline Gol Linhas Aereas Inteligentes SA led increases on the Ibovespa after a measure of quarterly earnings beat estimates.
Indian stocks rose to a record and the rupee climbed as foreign investors extended Asia’s largest equity-market inflows. Chinese stocks trading in Hong Kong climbed to the highest level in a month after earnings from Agricultural Bank of China Ltd. to China Mengniu Dairy Co. topped estimates.