Emerging-market stocks gained the most in more than a month as Greece moved closer to completing a debt-swap deal and data signaled that the global economy may be improving.
The MSCI Emerging Markets Index (MXEF) rose 1.4 percent to 1,052.69 by the close of trading in New York, the biggest one- day advance since Jan. 26. Homebuilders led a rally in Brazil as the central bank unexpectedly cut the key rate below 10 percent. Cia Brasileira de Distribuicao Grupo Pao De Acucar, Brazil’s biggest retailer, reached a record high and Coca-Cola Femsa SAB (KOFL) jumped the most since Dec. 21 in Mexico as consumer companies led gains on the MSCI Index.
Greece got about 85 percent of bondholders to swap holdings of the nation’s debt for new securities in the biggest restructuring in history, according to a banker briefed on the results who declined to be identified. Germany’s industrial output increased more than analysts predicted and Japan’s economy shrank less than initially estimated, data today showed.
“Greece is increasingly the story of yesterday,” Lars Christensen, chief emerging-market analyst at Danske Bank A/S in Copenhagen, said in a phone interview. “We’re pretty much priced for everything bad coming out of the PSI, and some of the correction we saw was about that.”
The MSCI gauge of developing nations tumbled 3.9 percent in the past three days, the biggest slump for such a period since November. The index has jumped 15 percent this year, compared with a 9.2 percent advance for stocks in developed markets. Emerging-market shares remain cheaper than developed-country stocks, trading for 10.7 times estimated earnings compared with 12.9 times.
The iShares MSCI Emerging Markets Index, an exchange-traded fund of developing-nation stocks, climbed 2.1 percent to $43.81 yesterday, the biggest one-day increase since Feb. 1.
The number of Americans filing claims for jobless benefits rose by 8,000 to 362,000 last week, Labor Department figures showed today, remaining at a level consistent with an improving labor market.
The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.8 percent as oil and some industrial metals advanced, boosting earnings prospects for producers.
Brazil (MXBR)’s Bovespa Index (IBOV) jumped 1.4 percent, rising for a second day. Brookfield Incorporacoes SA, (BISA3) Brazil’s third-largest homebuilder, reached the highest level in six months, and the MSCI Brazil/Consumer Discretionary Index advanced the most among 10 industry groups.
The Latin American nation’s central bank cut its target Selic rate by 75 basis points, or 0.75 percentage point, to 9.75 percent at a meeting yesterday. Two of 62 economists surveyed by Bloomberg anticipated the size of the cut, which was steeper than the median estimate for a 50 basis-point reduction.
Pao de Acucar jumped 7.4 percent and Coca-Cola Femsa gained 2 percent.
KGHM Polska Miedz SA (KGH), the copper miner that has Europe’s biggest output, jumped 1.9 percent in Warsaw. New World Resources Plc, the biggest Czech coking-coal producer, rose 1.5 percent, the first advance in six days.
Brazilian iron-ore producer MMX Mineracao & Metalicos SA (MMXM3) jumped 6.1 percent, and Tenaris SA (TS), the world’s largest producer of seamless steel tubes used in the oil industry, gained 4.4 percent in Buenos Aires.
China’s Shanghai Composite Index (IFB1) increased 1.1 percent today, ending a three-day slide, and the Hang Seng China Enterprises Index (HSCEI) of Hong Kong-listed Chinese stocks gained 1.8 percent. China may report the slowest inflation in 19 months tomorrow and industrial-production growth near a two-year low, according to economists surveyed by Bloomberg.
Markets in Russia and India were closed for public holidays.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries fell 11 basis points to 344 basis points, according to JPMorgan Chase & Co.’s EMBI Global Index.