Emerging-market stocks rallied, erasing this year’s declines, as China’s export growth stoked gains in technology companies and a surge in Turkish banking shares sent the Borsa Istanbul index to a record.
Lenovo Group Ltd., a personal-computer maker, jumped in Hong Kong as Chinese exports unexpectedly accelerated in April. Turkiye Garanti Bankasi AS (GARAN) rallied to an all-time high in Istanbul after being raised at UBS AG. African Bank Investments Ltd. (ABL) rebounded from a 26 percent plunge in Johannesburg. Brazil’s Ibovespa dropped from a six-week high as oil producer OGX Petroleo & Gas Participacoes SA slumped 9.7 percent.
The MSCI Emerging Markets Index added 0.8 percent to 1,061.09, its highest close since March 11. The 14.7 percent increase in exports was led by a 57.2 percent jump in shipments to Hong Kong that highlighted suspicions of false transactions used to mask capital flows into China. Investors speculated Standard & Poor’s will raise Turkey to investment grade.
“The data was better than expected,” Andres Garcia-Amaya, a New York-based global market strategist in JPMorgan’s investment management unit. “There’s a lot of noise to it, but it is improving.”
Gauges of financial, technology and consumer companies on the emerging-market index rose the most among 10 groups. The broader measure trades at 11.1 times 12-month projected profit, compared with the MSCI World’s valuation of 14.6, data compiled by Bloomberg show.
The iShares MSCI Emerging Markets exchange-traded fund rose 0.8 percent to $44.23. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, added 1.7 percent to 18.08.
Brazil’s Ibovespa (IBOV) fell 0.8 percent as OGX dropped to the lowest price since April 25, the most on the emerging-market gauge. Mexico had its credit rating raised by Fitch Ratings on the prospect that proposed legal changes will boost growth in Latin America’s second-largest economy. The peso rallied 0.4 percent to 11.9771 per U.S. dollar at 4 p.m. in Mexico City, extending its advance this year to 7.3 percent.
The Micex Index added 0.2 percent in Moscow, rising a fourth day, in the longest winning streak since Dec. 12. Russia is considering an increase in dividends paid by state-controlled companies to 35 percent of profit to boost budget revenue, said three government officials with knowledge of the matter.
Turkish banks sent the benchmark stock index up 1.6 percent. Turkiye Garanti, the country’s largest listed bank, rose 3.9 percent, with trading volume at 96 percent of the stock’s daily average, after UBS raised the stock to buy from neutral.
The FTSE/JSE Africa All-Share Index gained 1.6 percent, led by African Bank Investments. The lender climbed 7.7 percent in the biggest advance since March 2009.
Taiwan’s Taiex Index (TWSE) jumped 1.3 percent, its highest close since August 2011. The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong added 1.5 percent. Lenovo rose the most since April 24.
South Korea’s won rose to a two-month high. The currency’s advance for a fourth day prompted Kim Seong Wook, a director in the finance ministry, to say today the government will closely monitor any “unnecessary movement” that increases the exchange-rate volatility.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries rose one basis point, or 0.01 percentage point, to 269 basis points, according to JPMorgan Chase & Co.’s EMBI Global Diversified Index.