May 28 (Bloomberg) -- Emerging-market stocks rose for a third day as opinion polls of Greek voters eased concern the country will exit the euro area and speculation mounted China will take steps to boost its economy.
The MSCI Emerging Markets Index rose 0.9 percent to 910.03 as of 3:55 p.m. in New York. The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong climbed 1.1 percent. The Micex Index jumped 0.8 percent in Moscow as OAO Lukoil, Russia’s second-largest oil producer, added 2 percent after first-quarter profit increased 7.7 percent. Brazil’s Bovespa Index gained 1.2 percent.
China is speeding up investment approvals to support growth, with the size of stimulus estimated at between 1 trillion yuan ($158 billion) and 2 trillion yuan, Dong Tao, an economist at Credit Suisse Group AG, wrote in a research note today. Greece’s New Democracy party, which supports the European Union’s bailout plan, placed first in all six opinion polls published on May 26 during campaigning for next month’s vote.
“The mood seems to be improving today, perhaps reflecting the latest Greek polls that seem to favor the bailout supporters,” Benoit Anne, head of emerging-markets strategy at Societe Generale SA in London, wrote to clients by e-mail. “We remain quite cautious towards emerging markets in the near term, however.”
Emerging-market equities have fallen 11 percent in May, poised for the biggest monthly drop since September, as concern grew earlier in the month that Europe’s debt crisis will worsen.
Brazil’s benchmark equity index rose for a second day as Vale SA, the world’s largest iron-ore producer, followed metals higher. Homebuilder PDG Realty SA Empreendimentos & Participacoes rallied as much as 13 percent after saying a shareholder proposed injecting 800 million reais ($404 million) into the company.
OAO Mobile TeleSystems, Russia’s biggest mobile operator, rose 4.6 percent as Troika Dialog, citing MSCI Inc. data, said its weighting was lifted in the MSCI Russia 10/40 Index.
The ISE National 100 Index climbed 0.1 percent in Istanbul. Akbank TAS dropped 2.2 percent, falling for a sixth day after Citigroup Inc. reduced its stake by more than half last week.
The WIG20 Index jumped 0.9 percent in Warsaw, led by a 3.8 percent rise in PGE SA, Poland’s biggest electricity producer.
Mexico’s IPC index climbed 0.4 percent as Cemex SAB, the biggest cement maker in the Americas, added 1.3 percent.
The rand appreciated 0.7 percent against the dollar, the ruble slid 0.1 percent and the real strengthened 0.4 percent. The Mexican peso advanced 0.6 percent.
Russia’s dollar Eurobond due in 2022 rose for the first time in four days, pushing yields down one basis point, or 0.01 percentage point, to 4.28 percent.
Gome Electrical Appliances Holding Ltd., China’s second-biggest electronics retailer, sank 4.6 percent after the company reported an 88 percent slump in first-quarter profit.
The BSE India Sensitive Index, or Sensex, rose 1.2 percent. South Korean markets were closed for a holiday.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 410 basis points, according to JPMorgan Chase & Co.’s EMBI Global Index.
To contact the editor responsible for this story: Darren Boey at email@example.com