Emerging Stocks Gain on China Manufacturing; Qatar Shares Slump

Emerging-market stocks rose for a second day as a pickup in manufacturing spurred demand for Chinese shares while investors speculated Thailand’s army will boost the country’s economic growth.

Agriculture Bank of China Ltd. jumped to the highest level since January in Hong Kong. The SET Index in Bangkok rose for a sixth day. Turkish equities ended a two-day drop. Qatar’s stocks dropped as concern deepened that it may lose the right to stage the 2022 soccer World Cup. The Micex Index gained for a second day in Moscow.

The MSCI Emerging Markets Index advanced 0.5 percent to 1,034.87. A Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics on China rose to a four-month high, signaling the world’s second-biggest economy is stabilizing. Thailand’s junta pledged this week to step up investment and today relaxed curfews in three main tourist areas that were imposed following the May 22 coup.

“Fears of China’s economic slowdown deepening have been put to rest” following the PMI numbers, Omair Ansari, an equities analyst at Renaissance Capital Ltd. in London, said by e-mail.

The developing-nation’s gauge has risen 3.2 percent this year and is valued at 10.8 times projected 12-month earnings. That compares with a 3.3 percent gain in the MSCI World Index, which is trading at a multiple of 15.

Turkey Rises

The Ibovespa advanced 0.8 percent in Sao Paulo. State-run oil producer Petroleo Brasileiro SA contributed the most to the increase, rising 1.8 percent as crude gained.

The Borsa Istanbul 100 Index rose 0.2 percent. Turkey’s inflation rate of 9.66 percent in May was below the median estimate in a Bloomberg survey of 17 economists, the statistics institute in Ankara reported today.

The Micex increased 0.6 percent, after jumping 2.3 percent yesterday when Ukraine paid OAO Gazprom $786 million for gas it received in February and March. The ruble depreciated 0.4 percent, falling for a seventh day, its longest streak of losses since January.

Qatar’s stocks dropped for a second day, closing down 2.4 percent, the most since August 2011. The nation’s QE Index (DSM) was the worst performer among 93 indexes tracked by Bloomberg globally.

The BUX Index in Budapest fell 0.9 percent, with OTP Bank Nyrt. retreating from a 10-month high, sliding 2 percent. OTP, Hungary’s largest lender, used unfair exchange-rate margins in a foreign-currency mortgage loan, the country’s highest court said in a ruling that may impact $15 billion in such contracts.

Thailand, India

The rand weakened 0.8 percent, sliding for a third day, as economic data pointed to sluggish growth in the euro area, South Africa’s biggest trading partner.

Nine out of 10 industry groups in the MSCI Emerging Markets Index advanced, with a gauge of technology shares jumping 1.1 percent to a record high. Samsung Electronics Co., the world’s largest maker of smartphones, gained 1 percent to the highest since Nov. 29.

Thailand’s SET Index (SET) climbed 0.9 percent. The baht appreciated 0.7 percent after slumping 0.9 percent in the six days through yesterday, its longest losing streak this year.

The S&P BSE Sensex (SENSEX) Index increased 0.7 percent to a record high, after the Reserve Bank of India left its benchmark interest rate unchanged for a second straight meeting.

The Hang Seng China Enterprises Index rose 1.2 percent to the highest since April 10. China’s State Council said on May 30 that it will cut the reserve-requirement ratio for lenders that have extended a certain amount of loans to rural borrowers and smaller companies.

The Philippine Stock Exchange Index added 1.4 percent, the most since April 21. The Jakarta Composite rose 0.6 percent.

To contact the reporters on this story: Zahra Hankir in London at zhankir@bloomberg.net; Harry Suhartono in Jakarta at hsuhartono@bloomberg.net

To contact the editors responsible for this story: Daliah Merzaban at dmerzaban@bloomberg.net Ash Kumar, Richard Richtmyer

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