Emerging-Market Stocks Rise as ECB Delays Stimulus Withdrawal

Emerging-market stocks gained for a second day as the European Central Bank delayed its withdrawal of emergency liquidity measures to prevent the region’s debt crisis from spreading.

The MSCI Emerging Markets Index advanced 1.6 percent to 1,114.58 as of 10:26 a.m. in New York, poised for its best two-day rally since June. Russia’s Micex Index climbed 1.5 percent after PepsiCo Inc. agreed to buy a controlling stake in Moscow-based Wimm-Bill-Dann Dairy & Juice Co. Poland’s WIG20 Index rose 1 percent, China’s Shanghai Composite Index climbed 0.7 percent and Brazil’s Bovespa gained 0.8 percent.

The Frankfurt-based ECB will offer banks unlimited loans through the first quarter over periods of seven days, one month and three months, President Jean-Claude Trichet told reporters. Europe’s manufacturing industries expanded at the fastest pace in four months in November, led by Germany, the region’s largest economy.

“Market sentiment has turned to bullish from bearish because of the positive economic data,” said Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong. “People aren’t worrying about recession now. Market confidence is likely to continue for the rest of the year.”

The extra yield investors demand to own emerging-market government bonds over U.S. Treasuries narrowed 6 basis points to 250, according to JPMorgan’s EMBI+ Index.

Mol Nyrt., Hungary’s largest refiner, jumped 1.5 percent, helping to push the BUX Index up 0.6 percent. KGHM Polska Miedz SA, Poland’s only copper miner, rose 1.5 percent after oil traded near a three-week high and metal prices rallied.

Brazil Gains

Petroleo Brasileiro SA gained 1.5 percent after Brazil’s lower house of Congress approved oil regulations reducing competition against the state oil producer. Fibria Celulose SA, the world’s largest pulp producer, rose 1.4 percent as commodities prices climbed.

“The markets have basically rallied across the board, everything moving in tandem, whether good or bad,” Nigel Rendell, senior emerging-market strategist at RBC Capital, said by phone from London.

Wimm-Bill-Dann soared by as much as 74 percent in Moscow trading after PepsiCo said it will acquire 66 percent of Russia’s juice and dairy group for $3.8 billion. Cnooc Ltd., China’s biggest offshore oil producer, rose the most since Nov. 18 in Hong Kong trading after crude traded for as much as $87.10 a barrel. PetroChina Co. added 1.2 percent.

Copper rose in London to the highest level in almost three weeks as inventories shrank the most since September. Tin, lead, nickel and zinc all rose on the London Metal Exchange.