Emerging European and Brazilian stocks rose after government data showed the U.S. economy had grown more than economists expected in the second quarter.
Russia’s 30-stock Micex Index added 0.6 percent, erasing earlier losses of as much as 0.9 percent. Poland’s WIG20 Index gained 0.7 percent and Turkey’s ISE National 100 advanced 0.6 percent. Brazil’s Bovespa stocks index rallied 0.7 percent, snapping a six-day losing streak.
The MSCI Emerging Markets Index was 0.1 percent lower at 964.86 as of 9:05 a.m. in New York. The index of companies in 21 developing nations has lost 2.4 percent this week and 2.7 percent in August. Earlier today it had retreated as much as 0.5 percent, following declines in Asia.
The U.S. economy expanded at a revised 1.6 percent pace in the second quarter, according to Commerce Department figures. Economists projected 1.4 percent growth in a Bloomberg survey.
“The GDP data was probably a little bit better than the market had anticipated,” said Nigel Rendell, senior emerging markets strategist at RBC Capital in London. Before the report, “people would probably have gone for a pessimistic number rather than a number that was a little bit stronger,” he said.
Focus will now shift to whether Federal Reserve Chairman Ben. S. Bernanke signals measures to stimulate the economy when he speaks today, Rendell said.
Bernanke will discuss the outlook for the economy and policy responses at the central bank’s annual symposium in Jackson Hole, Wyoming.
Poland’s KGHM Polska Miedz SA, the copper producer with the biggest European mine output, rose 1.5 percent as copper for three-month delivery advanced 0.5 percent on the London Metal Exchange.
Editors: Linda Shen, Stephen Kirkland.
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