Hungarian shares rose the most in six weeks on speculation the U.S. and China can lead a recovery in the global economy and offset the impact of the debt crisis in Europe. The forint rallied.
The benchmark BUX index of shares gained 2.3 percent to 22,276.10 by the 5 p.m. close in Budapest. Mol Nyrt., the country’s biggest refiner, rose 4.1 percent to 21,450 forint and OTP Nyrt., the biggest lender, 2.4 percent to 5,625 forint. Hungary’s currency appreciated 0.5 percent to 267.71 per euro.
Federal Reserve Chairman Ben S. Bernanke told Congress the central bank is prepared to take additional action, including buying more government bonds, if the economy appears to be in danger of stalling. China’s economy expanded 9.5 percent last quarter, exceeding the 9.3 percent median estimate of economists in a Bloomberg News survey.
“China didn’t slam the brakes as much as the market feared,” Akos Kuti, analyst at Equilor Befektetesi Zrt. in Budapest, wrote in a research note today.
The expectation of another round of monetary easing from the Fed may also help offset the market impact of the euro-area debt crisis, Kuti added.
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