Emerging Stocks Rise to 15-Month High on U.S. Jobs Report

Emerging-market stocks rose for a fourth day after the U.S. jobless rate slid to an almost six-year low, boosting the outlook for global growth. The Brazilian real advanced from a one-week low.

The MSCI Emerging Markets Index added 0.2 percent to 1,062.18 in New York, the highest close since March 2013. Chipmaker Inotera Memories Inc. surged to a record. The Shanghai Composite Index rose to a two-week high and Turkey’s stock benchmark climbed 0.9 percent. The Ibovespa advanced in Brazil as commodity companies gained. The iShares Emerging Markets exchange-traded fund climbed for a third day, rising 0.6 percent.

U.S. employers added more workers than forecast in June and the unemployment rate dropped to 6.1 percent, Labor Department figures showed today. The report adds to global optimism after data on July 1 showed China’s manufacturing expanded in June at the fastest pace this year, while a private gauge signaled gains in India.

“This was a good report,” Timothy Ghriskey, chief investment officer at New York-based Solaris Asset Management LLC, which manages about $1.5 billion in assets, said by phone. “We’re optimistic that we could be seeing a little bit of pickup in the domestic recovery. We’re seeing some good recent data coming out of China, and there’s potential for an improved outlook in emerging markets.”

Vale Advances

The Ibovespa rose 1.6 percent, the most in two weeks. Vale SA, the world’s largest iron-ore producer, added 2.1 percent as metals prices climbed. The MSCI Brazil/Materials index was the best performer among 10 industry groups with a 1.8 percent advance. Mexico’s IPC Index (MEXBOL) gained 0.9 percent to the highest since April 2013.

The Dubai Financial Market General Index increased 0.2 percent, taking its three-day advance to 12 percent. Arabtec Holding Co. jumped 6.3 percent after its second-biggest shareholder, Aabar Investments PJSC, said it may raise its stake in the company that helped build the tallest tower in the world.

Egypt’s EGX 30 Index added 1.4 percent, the biggest gainer among Africa and Middle East markets.

The Borsa Istanbul 100 Index (XU100) rose 0.9 percent, rebounding from a six-week low, as steelmaker Eregli Demir ve Celik Fabrikalari TAS surged 5.9 percent to a record. The lira strengthened 0.1 percent, gaining for the first time in three days.

The WIG30 Index in Warsaw fell for a third day with a 0.5 percent slump. PGE SA, Poland’s largest power utility, extended its two-day decline to 8 percent after the nation completed the sale of a stake for 1.32 billion zloty ($434 million).

Services Index

The Shanghai Composite Index added 0.2 percent to a two-week high on its fourth day of gains, while the Hang Seng China Enterprises Index climbed 0.1 percent. Anhui Conch gained the most in three months in Hong Kong.

The HSBC-Markit index of China’s services industry rose to 53.1 in June, the highest since March 2013, a report showed. Readings of more than 50 indicate expansion. Separate data showed the official non-manufacturing gauge slid to 55 in June from 55.5 the month before.

The Philippine Stock Exchange Index gained 0.7 percent, while Taiwan’s Taiex Index (TWSE) rose 0.4 percent.

The premium investors demand to own emerging-market debt over U.S. Treasuries fell two basis points to 258, according to JPMorgan Chase & Co. indexes.

To contact the reporters on this story: Natasha Doff in London at ndoff@bloomberg.net; Julia Leite in New York at jleite3@bloomberg.net

To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net; Daliah Merzaban at dmerzaban@bloomberg.net Ash Kumar, Marie-France Han

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