Russian shares advanced for a second day as investor optimism the global economic recovery is on track spurred appetite for riskier emerging-market assets.
The 50-stock Micex Index closed 0.5 percent higher at 1,491.49 in Moscow, with 35 stocks rising and 15 declining. Oil company OAO Tatneft gained 2.5 percent, while aluminum producer United Co. Rusal declined 2.2 percent.
Emerging-market stocks advanced to a two-week high as record Chinese purchases of foreign currency signaled fund inflows and growth in U.S. service industries lifted exporters. The Dow Jones Industrial Average climbed to a record yesterday, erasing losses from the financial crisis. Brent for April settlement gained as much as 0.6 percent to $112.23 a barrel on the London-based ICE Futures Europe exchange before dropping as much as 0.9 percent.
“The market is in a more bullish mood, with the Dow hitting a new record high, better-than-expected macro data and oil over $111 a barrel,” Doug Rohlfs, an international salesman at UralSib Financial Corp. in Moscow, said in e-mailed comments.
Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg. The ruble lost 0.4 percent against the dollar to 30.7155 and weakened 0.1 percent versus the central bank’s target dollar-euro basket at 34.8812.
The Market Vectors Russia ETF, the largest dedicated Russian exchange-traded fund, added 0.6 percent to $29 by 7.21 p.m. The RTS Volatility Index, which measures expected swings in the stock futures, dropped 0.7 percent to 20.00.
The Micex trades at about 5.6 times estimated earnings after gaining 1.1 percent this year. That compares with a multiple of 10.6 times for the MSCI Emerging Markets Index and an increase of 0.1 percent.