Emerging-market stocks capped their first weekly decline in a month as the longest slide in gold since 2009 dragged down producers. Russian shares surged.
Harmony Gold Mining Co. (HAR) and Gold Fields (GFI) Ltd. tumbled at least 5.6 percent in Johannesburg. Synnex Technology International Corp. (2347) retreated 5.2 percent in Taipei as HSBC Holdings Plc cut its rating on the shares. The Micex Index (INDEXCF) jumped as EON Russia, a unit of Germany’s largest utility, announced plans to pay out all of last year’s profit as dividends. Turkey’s bond yields dropped to a record after Moody’s Investors Service raised the nation to investment grade.
The MSCI Emerging Markets Index slid 0.1 percent to 1,045.76, extending its weekly drop to 0.5 percent. Gold fell for a seventh day as exchange-traded product holdings shrank, the dollar strengthened and a U.S. Federal Reserve policy maker said stimulus may be reduced within months.
“The vast majority of underperformance of emerging markets can be directly linked to the strength in the dollar,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $147 billion, said by phone. “Commodities that those economies are dependent upon tend to fall in price because most are priced in dollars.”
Six out of 10 groups in the emerging-market index fell today, led by health-care shares. The broad gauge has lost 0.9 percent this year, compared with a 13 percent increase in the MSCI World Index of developed-country stocks.
The iShares MSCI Emerging Markets Index exchange-traded fund added 0.4 percent to $43.42. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, fell 2.9 percent to 18.32.
Brazil’s Ibovespa advanced 0.7 percent as steelmaker Usinas Siderurgicas de Minas Gerais SA jumped, while OSX Brasil SA, the shipbuilder controlled by billionaire Eike Batista, rallied the most in five weeks. The Mexican IPC Index gained 0.1 percent, snapping two days of losses.
The Micex Index added 2.1 percent as crude oil, Russia’s chief export earner, rose for a third day. EON Russia climbed 7.3 percent.
Benchmark gauges in Hungary, Turkey and Poland were little changed, while Czech shares declined.
The FTSE/JSE Africa All-Share Index was little changed as Harmony Gold sank to a 12-year low, while Gold Fields declined to the lowest level since November 2008.
Chinese stocks rallied, capping the longest streak of weekly gains in four months, on speculation the government will accelerate economic reforms. The Shanghai Composite Index (SHCOMP) rose 1.4 percent, extending this week’s gain to 1.6 percent. Hong Kong’s markets are shut today for a holiday.
Synnex tumbled after HSBC cut the stock’s rating to neutral from overweight. PT Unilever Indonesia (UNVR) surged 11 percent to a record, the biggest gain in the MSCI Emerging Markets Index.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries dropped nine basis points, or 0.09 percentage point, to 267 basis points, according to JPMorgan Chase & Co.’s EMBI Global Diversified Index.