Emerging Stocks Rebound From One-Month Low Before China Data

Emerging-market stocks rose, lifting the index from a one-month low, before China releases industrial production data today. The rupiah strengthened ahead of the central bank’s decision on interest rates.

Industrial & Commercial Bank of China Ltd. led Chinese banks higher in Hong Kong after media reports said lenders may take part in a preferred-stock trial. Taiwan Semiconductor Manufacturing Co. (2330) headed for a record close after raising its sales forecast. Infosys Ltd. tumbled 7.5 percent in Mumbai after a report that its sales growth for the current fiscal year may be near the lower end of its forecast. The rupiah climbed for the first time in three days versus the dollar while India’s rupee gained 0.5 percent.

The MSCI Emerging Markets Index rose 0.6 percent to 950.37 as of 12:20 p.m. in Hong Kong. China’s industrial production probably rose 9.5 percent in the January-February period from a year earlier, based on the median estimate of analysts surveyed by Bloomberg News. Output expanded 9.7 percent in December from a year earlier. Official data over the weekend showed the steepest slide in exports since 2009, highlighting the challenges for Premier Li Keqiang in achieving this year’s economic-growth target of 7.5 percent.

“Given the recent bad economic data, people are still hoping Li will mention some reforms that may boost the economy and the market,” Mao Sheng, an analyst for Huaxi Securities Co. said in Chengdu. “The valuations of the banks have dropped so much so people are buying them again and the preferred-stock report mean debt problems would be lessened.”

The developing-nation gauge has declined 5.2 percent this year and trades at 10.1 times projected 12-month earnings, according to data compiled by Bloomberg show. The MSCI World Index of developed countries has advanced 0.4 percent in 2014 and is valued at 14.8 times.

All 10 industry groups in the MSCI Emerging Markets Index advanced, led by technology and financial companies.

To contact the reporters on this story: Phani Varahabhotla in Hong Kong at pvarahabhotl@bloomberg.net; Weiyi Lim in Singapore at wlim26@bloomberg.net

To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Chan Tien Hin

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