Emerging Stocks Rise as Norilsk Jumps After Indonesia Ban

Emerging-market stocks advanced the most in a month as commodity producers jumped after Indonesia’s ban on mineral ore exports fueled speculation nickel supplies will decline. The Jakarta Composite Index led world gains.

The MSCI Emerging Markets Index added 0.8 percent to 977.42, gaining for a second day. OAO GMK Norilsk Nickel, the world’s largest producer of the metal, rallied the most in 13 months in Moscow, Nickel Asia Corp. (NIKL), which accounts for about a third of Philippine output, climbed. Indonesia’s benchmark stock index increased 3.2 percent for the biggest advance among 94 global indexes, while the rupiah rose the most in six weeks.

Commodity shares joined a rally in nickel after a ban on mineral-ore exports took effect in Indonesia, the biggest producer of the metal from mines. The ban is part of a wider policy to boost state revenue by turning Indonesia from an exporter of raw commodities into a manufacturer of higher-value products. Emerging-market stocks also gained as worse-than-estimated U.S. jobs data last week eased concern that the Federal Reserve will accelerate the pace of stimulus cuts.

“Indonesia’s ban on mineral ore exports is the best possible scenario for nickel producers,” Vladimir Sergievskiy, an analyst at Barclays Plc in London, said by phone today. “It’s not an easy decision and many market participants didn’t expect the ban to materialize. It cuts global supply and will result in higher prices.”

The iShares MSCI Emerging Markets Index exchange-traded fund retreated 1.2 percent to $39.79. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, advanced 0.9 percent to 22.30.

Brazil, Russia

Brazil’s Ibovespa fell as education company Estacio Participacoes SA (ESTC3) led losses in consumer stocks amid concern that higher interest rates will curb demand for equities, outweighing gains in homebuilders. Steelmaker Gerdau SA (GGBR4) sank to the lowest since November. State-run oil producer Petroleo Brasileiro SA contributed most to the benchmark gauge’s decline.

Russian shares gained the most this year as Norilsk increased 4.7 percent. The Czech PX Index capped the biggest advance since October, while benchmark stock gauges in Poland and Hungary added more than 1.5 percent.

The Jakarta Composite posted the biggest increase since Sept. 19 as banking, property and construction shares rose amid a strengthening rupiah. The currency gained the most since Dec. 2. Thailand’s stocks jumped to a two-week high on optimism Prime Minister Yingluck Shinawatra’s proposal to initiate talks with anti-government demonstrators will help ease political tensions. Nickel Asia climbed 5.7 percent in Manila.

Infosys Rallies

India’s benchmark stock index rose the most in seven weeks after factory output unexpectedly fell and U.S. jobs growth slowed, easing concern that the nations’ central banks will tighten monetary policy. Infosys Ltd. (INFO) climbed, completing its biggest two-day gain in three months. Oil & Natural Gas Corp. (ONGC) increased for a third day, sending a measure of energy companies to its steepest gain in four weeks. ICICI Bank Ltd. (ICICIBC), the nation’s second-largest lender, rallied the most in a month.

The Shanghai Composite (SHCOMP) fell for a fourth day, as declines for technology and consumer shares overshadowed a rally for raw-material companies. GoerTek Inc. (002241), an Apple Inc. supplier, retreated to the lowest level since May. Aluminum Corp. of China Ltd., known as Chalco, gained at least 7 percent in Shanghai and Hong Kong after it estimated net income of 1 billion yuan ($165 million) in 2013.

The premium investors demand to own emerging-market debt over U.S. Treasuries advanced two basis points, or 0.02 percentage point, to 320 basis points, according to JPMorgan Chase & Co.

To contact the reporters on this story: Halia Pavliva in New York at hpavliva@bloomberg.net; Zahra Hankir in London at zhankir@bloomberg.net; Ian Sayson in Manila at isayson@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at tbarak@bloomberg.net

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