Emerging-market stocks rose, led by technology companies, as exporters climbed on bets the U.S. economy is improving.
Samsung Electronics Co. (005930), which got 30 percent of its sales from the U.S. in the last quarter, advanced to a three-week high in Seoul. Dubai’s gauge soared to the strongest level since 2008 after the emirate won a bid to host the World Expo 2020. Iron-ore producer Vale SA rallied the most since Oct. 14 in Sao Paulo as it agreed to settle a tax dispute with Brazil. The Brazilian real appreciated 0.6 percent and the Turkish lira strengthened 0.5 percent for the biggest gains among developing-nation currencies.
The MSCI Emerging Markets Index climbed 0.3 percent to 1,012.02, a one-week high, and trimming a drop this month. U.S. data yesterday showed jobless claims in the world’s largest economy fell, while consumer sentiment exceeded estimates. The 21 countries in the developing-nations gauge send about 17 percent of their exports to the U.S., data compiled by the World Trade Organization show.
“EM equities and currencies have been under-performing in November, so on the margin there is some mean reversion,” Joseph Dayan, head of markets at BCS Financial Group in London, said by e-mail.
The MSCI Emerging Markets Index has fallen 2.2 percent this month, lagging a 1.6 percent advance in the MSCI World Index. The developing-nations’ gauge trades at 10.6 times projected 12-month earnings, compared with a multiple of 14.6 for the developed-country measure.
Eight of 10 industry groups in the emerging-market benchmark rose today, with the gauge of technology shares increasing 1 percent. The measure is the best-performing industry group on the broader index this year.
Brazil’s Ibovespa was little changed, erasing earlier gains after the government reported a primary surplus for October that was below economists’ estimates.
Vale rallied 2.7 percent. The company agreed to pay 22.3 billion reais ($9.6 billion) to settle a decade-long tax dispute with Brazil over profits of its foreign units, before a deadline tomorrow.
The DFM General Index (DFMGI) gained 1.6 percent to a five-year high. Dubai, which will be added to the developing-country index next year, was the first Middle Eastern city to win a bid in the Expo’s 162-year history.
South Africa’s FTSE/JSE Africa All Shares Index rose 1.1 percent, bringing a two-day increase to 2.4 percent, the most since July. Benchmark bonds due December 2026 fell for the fourth day amid the worst foreign-investor selloff of local debt in more than two years.
Samsung, South Korea’s biggest exporter of consumer electronics, added 1.6 percent. The Shanghai Composite Index (SHCOMP) rose 0.8 percent to a one-month high as the government signaled measures to reduce coal supply that may boost industry prices.
The Philippine Stock Exchange Index jumped 1.9 percent, its biggest increase since Oct. 2, while the S&P BSE Sensex of Indian shares climbed 0.6 percent.
Indonesia’s rupiah dropped 1.1 percent to the lowest since 2009 after a failed debt sale added to concern fund inflows are slowing on the prospect of a cut in stimulus by the Federal Reserve.
The Thai baht sank for an eighth day, poised for the longest stretch of declines since September 2011. Protest leader Suthep Thaugsuban rejected Prime Minister Yingluck Shinawatra’s offer to hold talks to ease political tensions as demonstrators continued their campaign to disrupt government ministries.
The premium investors demand to own emerging-market debt over U.S. Treasuries fell one basis point, or 0.01 percentage point, to 334 basis points, JPMorgan Chase & Co. indexes show.
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