Emerging Stocks Rally With Commodities as Russia Climbs

Emerging-market stocks rose, led by Russian shares, as a rally in commodities boosted producers. Brazil’s Ibovespa capped the longest winning streak since September as mining companies followed metals prices higher.

OAO Gazprom, the natural-gas export monopoly, jumped 3.6 percent in Moscow, leading the Micex Index to the biggest advance among major gauges in developing nations. Vale SA and MMX Mineracao e Metalicos SA drove the Brazilian benchmark measure up a fifth day. Hon Hai (2317) Precision Industry Co. and Wintek Corp. (2384) rallied in Taipei as Apple Inc. suppliers surged on bigger-than-estimated shipments of iPhones and iPads.

The MSCI Emerging Markets Index gained 0.8 percent to 1,017.71 in New York. Equities followed commodities higher on speculation the European Central Bank will cut its key interest rate to a record low next week as the euro-region economy slumps, according to banks including Nomura International Plc, UBS AG and Royal Bank of Scotland Group Plc. Oil climbed the most this year as copper and gold rallied.

“There’s a hope the ECB may be looking at a rate cut and that would help the European economy,” Michelle Gibley, director of international research at San Francisco-based Charles Schwab Corp., said by phone. Her firm manages $2.08 trillion in client assets. The stimulus measures in place at developed countries “help overall global growth.”

Nine out of 10 groups in the MSCI Emerging Markets Index (MXEF) rose, led by healthcare and energy shares. The emerging-markets index has lost 3.6 percent this year, trailing an 8.4 percent increase in the MSCI World Index of developed-country stocks. The emerging-markets measure trades at 10.7 times 12-month projected profit, compared with the MSCI World’s valuation of 14.1, according to data compiled by Bloomberg.

Emerging ETF

The iShares MSCI Emerging Markets Index exchange-traded fund rose 0.6 percent to $42.30 in a fifth day of gains. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, lost 0.2 percent to 18.79.

Brazil’s Ibovespa added 0.2 percent as MMX advanced 7.6 percent, while Vale rose 0.7 percent. Mexico’s IPC Index dropped 1.9 percent, the most among major emerging-market indexes, as Fomento Economico Mexicano SAB tumbled after missing first- quarter sales estimates.

Russia’s Micex Index gained 2.8 percent, the biggest jump since September. Gazprom contributed with most index points to the gauge of developing nations today. VTB Group, Russia’s second-biggest lender, rose as profit beat analysts’ estimates.

Benchmark gauges in Turkey, Czech Republic, Hungary and Poland advanced.

Chinese Stocks

The Shanghai Composite Index rose 1.6 percent, after slumping 2.6 percent yesterday as a gauge of manufacturing missed estimates. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong jumped 2 percent. China Construction Bank Corp. rallied 2.1 percent to the highest price since April 3. South Korea’s Kospi Index rose 0.9 percent.

Taiwan’s Taiex Index gained 1 percent to the highest level since March 11. Hon Hai, the Taipei-based assembler of iPhones and iPads, added 2.5 percent. Wintek, a supplier of touch panels for Apple devices, rose 3.5 percent.

National Bank of Abu Dhabi PJSC (NBAD) jumped to the highest level in more than seven years after quarterly profit at the second- biggest lender in the United Arab Emirates beat analysts’ estimates.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries slid one basis point, or 0.01 percentage point, to 292 basis points, according to JPMorgan Chase & Co.’s EMBI Global Index.

To contact the reporters on this story: Maria Levitov in London at mlevitov@bloomberg.net; Julia Leite in New York at jleite3@bloomberg.net

To contact the editors responsible for this story: Gavin Serkin at gserkin@bloomberg.net; Emma O’Brien at eobrien6@bloomberg.net

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