Emerging Stocks Climb Most in 5 Months on China Exports

Emerging-market stocks rose to the highest level in two weeks after better-than-estimated Chinese trade and lending figures outweighed doubt that Spain’s bailout plan will fail to contain the debt crisis.

The MSCI Emerging Markets Index rose 1.1 percent to 914.87 at the close in New York, the highest level since May 29. PT United Tractors, Indonesia’s biggest heavy equipment seller, rose 6 percent to lead the index’s advance, while China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, surged the most in six months. Brazil’s Bovespa fell 0.8 percent as OGX Petroleo e Gas Participacoes SA tumbled.

Chinese exports climbed at more than double the pace economists predicted in May as new lending of 793.2 billion yuan ($125 billion) topped estimates, and inflation fell to a two-year low, according to government reports. While Spain’s weekend request for as much as 100 billion euros ($125 billion) to bail out banks fueled early gains, optimism over the plan faded as some investors said it won’t halt the European debt crisis.

“There was a great deal of enthusiasm over the weekend for the news that Spain would reach out to its EU colleagues to request a 100-billion-euro package,” Benoit Anne, head of emerging-markets strategy at Societe Generale SA in London, said in an e-mailed note to clients today. “While this announcement should be welcome, I don’t see this as a major game changer in the EU sovereign debt crisis.”

While delivering “something of a mixed bag,” China’s May economic data “continued to paint a picture of soft momentum,” Anne wrote in a separate e-mail.

Oil Declines

Emerging stocks have slipped 0.2 percent in 2012 and trade at a multiple of 9.9 times estimated earnings, compared with 11.7 for the MSCI gauge of developed nations, which has advanced 0.1 percent this year.

OGX Petroleo, the Brazilian oil company controlled by billionaire Eike Batista, retreated 7.4 percent in Sao Paulo as crude oil for July delivery fell 1.7 percent to $82.70 on the New York Mercantile Exchange. Brazil’s Bovespa fell 0.8 percent, paring earlier gains of as much as 1.8 percent.

The Hang Seng China Enterprises Index climbed 2.4 percent, its steepest increase since April 13. China Cosco Holdings surged 11 percent in Hong Kong, the most in six months, on prospects increasing trade will boost demand for marine transport.

China’s Exports

Chinese exports climbed 15.3 percent in May, the Beijing-based customs bureau said, exceeding all 29 forecasts in a Bloomberg News survey. Imports rose 12.7 percent compared with estimates of a 5.5 percent gain. Inflation slowed to 3 percent, compared with the 3.2 percent median forecast in a Bloomberg News survey.

Thailand’s SET Index rose 2.7 percent, the most in seven months. PTT Exploration & Production jumped 4.7 percent after Cove Energy, the U.K. explorer that agreed to be bought by PTTEP, said it found natural gas. Taiwan’s Taiex Index and South Korea’s Kospi rallied 1.7 percent.

The BSE India Sensitive Index, or Sensex, snapped five days of gains, slumping 0.3 percent. The WIG20 Index advanced 0.5 percent in Poland, which sends most of its exports to the euro zone. The BUX Index slipped 1.3 percent in Budapest.

Turkey’s benchmark index jumped 0.4 percent, rising for a seventh day, its longest winning streak since 2010. Akbank TAS climbed 1 percent, helping to push the Turkish advance.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries climbed three basis points, or 0.03 percentage point, to 401, according to JPMorgan Chase & Co.’s EMBI Global Index.

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