Emerging-market stocks advanced, paring a monthly decline, amid receding prospects for an imminent strike against Syria. Brazil’s Ibovespa (IBOV) posted its biggest monthly gain this year led by commodities exporters.
The Jakarta Composite Index climbed the most in a month as PT Global Mediacom surged 17 percent after announcing a buyback plan. Samsung Electronics Co. (005930) capped the longest rally since May 2012. The Ibovespa rose 3.7 percent in August as pulp maker Suzano Papel e Celulose SA soared. Indonesia’s rupiah posted the biggest monthly decline since the global financial crisis of 2008, while Brazil’s real tumbled 1.1 percent.
The MSCI Emerging Markets Index increased 0.9 percent to 929.54 after the U.K. parliament declined to back military action in Syria. The fell 1.9 percent this month. West Texas Intermediate crude fell for a second day. Consumer confidence in the U.S. dropped in August from a six-year high, while consumer spending rose less than forecast in July.
“There are some opportunities on the market,”Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees about $380 billion, said by phone. “The uncertainty surrounding Syria had an impact on the markets this week. Any resolution will be welcome.”
Nine out of 10 groups in the MSCI Emerging Markets Index rose today, led by health-care shares. The gauge of developing nations trimmed this year’s plunge to 12 percent, compared with an 10 percent advance for a measure of developed markets.
The iShares MSCI Emerging Markets Index exchange-traded fund rose 0.8 percent to $38.02. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, added 0.5 percent to 28.14.
Brazil’s Ibovespa posted a second monthly gain as Suzano rose 3 percent. Eike Batista’s OGX Petroleo & Gas Participacoes SA plunged 40 percent to a record low 30 centavos in the last minutes of trading.
The Micex Index slid 0.5 percent in Moscow. OAO Inter RAO UES declined 3.2 percent. The partially state-owned Russian power company posted a net loss in the first half. Benchmark gauges in Poland and Hungary advanced.
Indian equities climbed, with the benchmark index halting five weeks of declines, after Prime Minister Manmohan Singh said policy changes in the past year will help stem the rupee’s slide. HDFC Bank Ltd. (HDFCB) gained the most in 20 months. The nation’s economy expanded at the weakest pace since 2009 last quarter, data showed today. The rupee gained 1.4 percent.
The Jakarta Composite Index surged 2.2 percent as Global Mediacom (BMTR) climbed the most since October 2010. The rupiah slumped 5.9 percent in August, the biggest drop since November 2008. Malaysia’s ringgit posted its fourth monthly drop. South Korea’s Kospi Index posted the best week in a year as Samsung rallied a sixth day. The Shanghai Composite Index rose 0.1 percent, adding to a 2 percent gain this week.
The premium investors demand to own emerging-market debt over U.S. Treasuries slid five basis points, or 0.05 percentage point, to 354 basis points, according to JPMorgan Chase & Co.
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