Emerging Stocks Rise to One-Year High on China Data; Ruble Gains

Emerging-market stocks rose to a one-year high as better-than-expected exports cushioned China’s economy from a deeper slowdown. Yuan forwards surged the most since January 2012 and Russia’s ruble rose.

The Ibovespa increased the most among the world’s biggest equity gauges as Brazilian commodity exporters advanced. Akbank (AKBNK) TAS led gains on the Borsa Istanbul 100 Index after Morgan Stanley raised the shares. The Micex Index extended its rally of more than 20 percent from this year’s low in Moscow. China Shipping Container Lines Co. (2866) paced a jump for shipping companies in Hong Kong. (700)

The MSCI Emerging Markets Index gained 0.4 percent to 1,048.63. Data yesterday showed China’s overseas shipments rose 7 percent in the 12 months to May, exceeding the 6.7 percent median estimate of analysts surveyed by Bloomberg. Yuan forwards jumped after the nation’s central bank raised its reference rate by the most since October 2012. May U.S. non-farm payrolls topped their pre-recession peak.

“In China, there are some expectations of pro-growth measures,” Hertta Alava, the head of emerging markets at FIM Asset Management Ltd. in Helsinki, said by e-mail. “Trade balance which was released over the weekend was better than expected and exports were especially strong.”

Shipments Data

Imports fell 1.6 percent, leaving a $35.92 billion trade surplus, the biggest in five years according data compiled by Bloomberg.

The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong rose 0.6 percent to the highest close since April 10. China Shipping Container jumped 3.2 percent while Cosco Pacific Ltd. (1199) advanced 2.4 percent to a six-month high.

The developing-market gauge has risen 4.6 percent this year and trades at 13.3 times reported earnings, the highest level since May 2011, data compiled by Bloomberg show.

The Ibovespa jumped 2.2 percent. Iron-ore producer Vale SA gained 1.8 percent as raw-material exporters advanced. China is Brazil’s biggest trading partner.

Akbank added 1.5 percent, providing the biggest boost to Turkey’s equity gauge, after Morgan Stanley raised its recommendation on the company to overweight.

Russia’s Micex Index rose less than 0.1 percent to the highest since Feb. 24. OAO Mechel, the nation’s biggest coking coal producer, gained 1 percent.

Peace Talks

Ukraine’s new leader, Petro Poroshenko, said the violence that’s rocked the former Soviet republic’s easternmost regions must end this week as peace talks began involving an envoy of Russian President Vladimir Putin. The ruble increased for the fourth day, appreciating 0.3 percent against the dollar.

The S&P BSE Sensex gained 0.7 percent to a record, extending its rally for a third day, as engineering companies and cement makers advanced amid bets the government will boost spending and accelerate approvals for roads, ports and power projects.

Vietnam’s VN Index rose 1.2 percent to the highest level since April 29 after Saigon Times reported that the government may raise foreign ownership limits at securities companies before other industries.

Eight out of 10 industry groups in the MSCI Emerging Markets Index advanced, led by material companies. A gauge of technology companies was the worst performer, dropping 0.1 percent.

Dubai’s DFM General Index (DFMGI) fell 4.1 percent, extending yesterday’s 2.5 percent drop. Builder Arabtec Holding Co. (ARTC) tumbled 9.7 percent while Emaar Properties PJSC (EMAAR) lost 3.7 percent. Dubai shares declined yesterday as a United Arab Emirates Central Bank report signaled the country’s real estate market may be overheating.

Qatar’s benchmark index lost 1.4 percent, also in the second day of decreases. Sony Corp. (6758) and Adidas AG (ADS) stepped to the lead of corporate sponsors pressing FIFA, soccer’s governing body, to fully investigate the latest allegations that Qatar won the right to host the 2022 World Cup through improper means.

The premium investors demand to own developing-country debt over U.S. Treasuries slipped three three basis points to 252, according to JPMorgan Chase & Co. indexes.

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

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

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