Emerging-market stocks rose the most in three weeks, led by industrial and technology companies, as better-than-estimated data on Chinese exports bolstered confidence on global growth. India’s shares jumped to a record.
The MSCI Emerging Markets Index added 1.1 percent to 1,012.76. Technology companies in the measure for developing nations rallied to the highest level since at least 1995, led by Samsung Electronics Co. (005930) Engineering company Larsen & Toubro Ltd. paced gains in India’s S&P BSE Sensex (SENSEX) after the nation’s main opposition party won the state polls. Ukraine default swaps increased to the highest level since January 2010, while the Chinese yuan’s strengthened to a 20-year high.
Stocks climbed after a report showed that China’s trade surplus widened last month to the largest in more than four years as exports exceeded estimates, in a sign global demand is helping sustain a recovery in the world’s second-biggest economy. India’s shares jumped on speculation a new government will enact policies to bolster the nation’s economic growth.
“Chinese exports were much stronger than expected, which is helping the rest of north Asia as well,” Michael Wang, an emerging-markets strategist at Amiya Capital LLP in London. “In India, the opposition did better in state elections than expected. The sentiment is more positive for emerging markets now than compared to the summer because the growth cycle in emerging markets is at least accelerating.”
The iShares MSCI Emerging Markets Index exchange-traded fund added 0.1 percent to $42. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, declined 0.6 percent to 24.87.
Brazil’s Ibovespa rose for a third day as traders pared bets on higher borrowing costs in Brazil, boosting the outlook for companies that sell in the local market. B2W Cia. Digital led gains among retailers. Petrochemicals producer Braskem SA (BRKM5) was the worst performer on the equity gauge after O Estado de S.Paulo reported Petroleo Brasileiro SA (PETR4) is seeking to raise prices of naphtha sold to the company by 5 percent.
Russian stocks gained as OAO Aeroflot, the nation’s biggest airline, surged to a two-year high after reporting an 88 percent gain in third-quarter profit. The cost of insuring Ukrainian government bonds increased to the highest level in four years as Russia cast doubt on imminent assistance for its neighbor. Benchmark stock gauges in Hungary and Poland declined, while Turkish shares rallied.
The Shanghai Composite Index (SHCOMP) rose for the first time in three days as Hangzhou HIK-Vision Digital Technology Co. led technology companies higher. China Shenhua Energy Co. sank on concern worsening pollution may reduce reliance on the fuel. Haier Electronics Group Co. (1169) surged to the highest in 14 years in Hong Kong trading after Alibaba Group Holding Ltd. agreed to invest HK$2.82 billion ($364 million) in the home-appliance maker and its logistics business.
The yuan climbed 0.2 percent to close at 6.0723 per dollar in Shanghai, after touching 6.0713 earlier, the strongest level since 1993, China Foreign Exchange Trade System prices show. The surge signals policy makers are becoming more willing to let investment and trade flows determine the exchange rate as the nation’s trade surplus swells to the biggest since 2009.
India’s S&P BSE Sensex jumped 1.6 percent and the currency touched 60.8475 per dollar, the strongest level since Aug. 12. ICICI Bank Ltd. (ICICIBC) soared 5.1 percent, sending a gauge of 13 lenders to its highest level since June. Victories by the Bharatiya Janata Party in areas holding about a sixth of the nation’s 1.2 billion people would give it momentum to end the ruling Congress party’s decade-long rule in polls due by May and install Narendra Modi as prime minister.
Thailand’s baht, bonds and stocks advanced as Prime Minister Yingluck Shinawatra said she will dissolve parliament after lawmakers from the main opposition party quit en masse to join protests aimed at ousting her. Malaysia’s ringgit strengthened the most in two months, while South Korea’s won rose to the strongest level in more than two years.
The premium investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 332 basis points, according to JPMorgan Chase & Co.
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