Emerging-market stocks climbed to a 17-month high as Chinese shares rose amid bets the government will do more to bolster growth. Russian equities rebounded and Saudi Arabia jumped on plans to open the market to foreign investors.
China Petroleum & Chemical Corp. rose the most since March in Hong Kong as the Hang Seng China Enterprises Index jumped 2.4 percent. Saudi stocks rallied 2.8 percent to their highest in more than six years. The Micex Index in Moscow ended its longest losing streak since January after rebels in Ukraine released bodies from the Malaysian jet crash site. The rupiah slid before the results of the presidential election today.
The MSCI Emerging Markets Index added 1.1 percent to 1,074.50 by 2:40 p.m. in London, the strongest level since February 2013. Russia is happy rebels handed over black boxes to Malaysian representatives, Russia’s Foreign Ministry said in a website statement. Saudi Arabia will allow foreign investors into its stock market in the first half of 2015, providing greater access to the Arab world’s biggest exchange.
“Saudi Arabia is rallying after it approved foreign investor access,” Michael Wang, an emerging-market strategist in London at Amiya Capital LLP, said by e-mail. “This is clearly a huge positive, but we’re waiting for further details on implementation.”
All 10 industry groups in the developing-nation measure rose, led by energy shares. China Petroleum & Chemical surged 3.6 percent after saying first-half oil and gas output increased 8 percent.
Rebels in Ukraine’s east began releasing the bodies of the 298 people killed in the shooting down of a Malaysia Airlines passenger jet last week as European foreign ministers meet to discuss sanctions against Russia today.
Russia’s Micex Index climbed 1.9 percent, snapping a six- day retreat, as a technical indicator signaled losses were overdone. The 14-day relative strength index for the bourse fell below 30 yesterday, signaling to some analysts the gauge was oversold. It rebounded to 37 today.
OAO Sberbank, the nation’s biggest lender, added 2.5 percent, while oil producer OAO Bashneft surged 7.7 percent after losing 21 percent in the previous four days. The ruble advanced 0.8 percent versus the dollar.
Poland’s WIG30 Index climbed 0.7 percent, gaining for the first time in three days. Hungary’s BUX Index rose 0.8 percent, increasing for a second day, and the PX Index in Prague added 0.3 percent. The Borsa Istanbul 100 Index advanced 0.5 percent.