Emerging-market stocks rose for the first time in three days as consumer discretionary shares rebounded from a six-week low. India’s benchmark equity gauge tumbled the most in three weeks after the central bank refrained from cutting interest rates.
Grupa Lotos SA (LTS), Poland’s second-largest oil refiner, climbed to the highest level in more than a year after profit beat analysts’ estimates. State Bank of India Ltd. sank the most in almost three months. OAO Gazprom, Russia’s biggest natural gas exporter, dropped to a three-month low after the board approved a 25 percent spending increase this year.
The MSCI Emerging Markets Index gained 0.3 percent to 993.09 in New York. Copper rose in New York for the first time in nine sessions on the prospects for demand to strengthen in China. Bank of America Merrill Lynch raised its forecast for the country’s economic growth to 7.7 percent from 7.6 percent this year. India refrained from cutting borrowing costs today to fight price pressures, while Hungary lowered its main interest rate for a third month as concern about economic growth outweighed inflation.
“The absence of bad news is good news,” Aurelija Augulyte, an emerging-markets strategist at Nordea Bank AB in Copenhagen, said by e-mail. “The markets are at the turn toward risk-off, but not there yet.”
The MSCI Emerging Markets Index (MXEF) has lost 1 percent this month, headed for its worst month since May. Equity trading volumes in some Asian markets were lower than average as Hurricane Sandy shuttered U.S. stock markets for a second day and sent floodwaters gushing into New York City.
The number of shares changing hands for South Korea’s Kospi Index (KOSPI) companies was 44 percent below the 30-day average, according to data compiled by Bloomberg. Trading volumes were about 12 percent lower than average for the Shanghai Composite Index. (SHCOMP)
“With the U.S. closed the likelihood of other markets moving in a big way is substantially lower,” Maarten-Jan Bakkum, an emerging-market strategist at ING Investment Management in The Hague, said by e-mail.
Russia’s Micex index fell for a sixth day, the longest losing streak since May, while Brazil’s Bovespa jumped 0.9 percent. The BSE India Sensitive Index (SENSEX) lost 1.1 percent while China’s Shanghai Composite Index added 0.2 percent. Taiwan’s Taiex Index rallied 1.3 percent, snapping a seven-day slide, which was its longest losing streak since May 2010. Benchmark indexes in the Czech Republic, Turkey and Thailand gained more than 1 percent.
South Korea’s Kospi index advanced 0.4 percent and the won gained to a 13-month high as data showed the country’s current- account surplus widened to the second biggest on record in September. The Hungarian forint strengthened and yields on three-year government bonds declined after the central bank cut its benchmark rate to 6.25 percent, still the European Union’s highest.
A gauge of consumer discretionary and technology companies led gains among the 10 industry groups in the MSCI Emerging Markets Index, adding more than 1 percent. The developing- nations measure has climbed 8.4 percent this year, trailing a 10 percent increase by the MSCI World Index. (MXWO) The emerging-markets index trades at 11.5 times estimated earnings, compared with the MSCI World’s multiple of 13.2, according to data compiled by Bloomberg.
Hyundai Motor Co., South Korea’s largest automaker, jumped 2.5 percent, rebounding from its biggest decline in seven weeks yesterday. Kia Motors Corp. (000270), the country’s second-largest carmaker, climbed 2.3 percent.
Grupa Lotos advanced 5.3 percent to the highest since August 2011. The company reported net income was 626 million zloty ($195 million) in the third quarter, beating the median estimate of 459.6 million zloty in a Bloomberg survey of five analysts.
ZE PAK SA (ZEP), the power producer controlled by Polish billionaire Zygmunt Solorz-Zak, dropped on its first day of trading in Warsaw after holding the country’s largest initial public offering in more than a year.
State Bank of India, the nation’s biggest lender, dropped 4.3 percent, the most since Aug. 9.
Gazprom fell 2.4 percent, the most since July. The board today approved a revised, 975 billion-ruble ($31 billion) budget for the year, the Moscow-based company said in an e-mailed statement today. The program, which is 25 percent higher than the initial plan adopted in December, includes 890 billion rubles of capital expenditure on gas production, transportation and storage projects.
Ecopetrol SA, Colombia’s largest oil company, tumbled 3 percent, the most in more than four months, after profit declined for a second straight quarter. Net income slid 22 percent from a year earlier to 3.23 trillion pesos ($1.77 billion), the Bogota-based company said yesterday after markets closed.
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