Emerging-market stocks advanced for a second day after Iran agreed to limit its nuclear program, bolstering appetite for riskier assets. OAO Gazprom paced declines in energy producers as crude oil slumped.
The MSCI Emerging Markets Index rose 0.1 percent to 1,010.63. Hindustan Petroleum Corp. and Bharat Petroleum Corp. drove the S&P BSE Sensex (SENSEX) to the biggest gain in Asia as India imports 80 percent of its oil. The Borsa Istanbul National 100 Index jumped to the highest in three weeks as banks increased. Russia’s Micex Index reversed earlier gains, led by Gazprom.
Seven out of 10 groups in the gauge for developing-nation stocks gained as technology companies jumped. Energy and raw material shares followed commodities lower. Iran agreed yesterday to curtail its nuclear activities and won an easing of certain sanctions on oil, auto parts, gold and precious metals for six months. The nation’s oil exports will be held to about 1 million barrels a day under restrictions that remain in force.
“A lot of that might be the reaction with Iran more than anything else,” James Paulsen, the Minneapolis-based chief investment strategist at Wells Capital Management, said by phone. He helps oversee more than $340 billion in assets. “Just the idea of something that restores peace to the region or at least brings less volatility is certainly good for a lot of the emerging world.”
The iShares MSCI Emerging Markets Index exchange-traded fund fell 1.3 percent to $41.51. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, advanced 4.4 percent to 24.38.
Brazil’s Ibovespa fell for the third time in four sessions as Gerdau SA (GGBR4) dropped 3.1 percent after Credit Suisse Group AG cut its recommendation on the steelmaker. LLX Logistica SA, the logistics unit founded by Eike Batista, tumbled.
The Micex Index declined as Gazprom retreated 1.1 percent after being downgraded at VTB Capital. State-run power company OAO Inter RAO UES and LSR Group slumped before their exclusion from MSCI Inc.’s Russia index takes effect. United Co. Rusal, the world’s largest aluminum producer, jumped 8.1 percent as Prime Minister Dmitry Medvedev met executives to discuss support for an industry suffering a drop in demand and prices.
The Borsa Istanbul National 100 Index climbed 1.2 percent, led by Turkiye Garanti Bankasi AS.
India’s S&P BSE Sensex jumped percent as Hindustan Petroleum added 5.7 percent. Bharat Petroleum Corp. surged the most since Sept. 27. The rupee rallied on optimism a drop in oil costs will help shrink the South Asian nation’s current-account deficit.
China’s stocks slid for a third day, led by energy producers, after a explosion at a China Petroleum & Chemical Corp. (600028) pipeline killed 55 people. China Petroleum, also known as Sinopec, slumped the most in five months. PetroChina Co. and China Shenhua Energy Co. dropped at least 1.3 percent.
Thailand’s baht fell to a 10-week low and the stock index had its worst close in two months after foreign funds pulled money from local assets amid concern political tension will intensify and harm growth.
The premium investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 330 basis points, according to JPMorgan Chase & Co.
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