Emerging-market stocks rose, extending the biggest weekly rally in two months, as data showing the U.S. added fewer jobs than forecast damped speculation the Federal Reserve will reduce stimulus. Brazil’s Ibovespa climbed the most among global equity indexes.
The MSCI Emerging Markets Index added 0.9 percent to 955.73, extending its rally for the week to 2.8 percent. The Ibovespa posted the biggest advance among the 94 world equity gauges tracked by Bloomberg, approaching a bull market, as OGX Petroleo e Gas Participacoes SA surged 27 percent. Poland’s WIG20 Index rebounded from a two-month low. ICICI Bank Ltd. jumped 7.2 percent in Mumbai as India’s rupee strengthened.
Stocks rallied as a report showed payrolls in the U.S. climbed less than projected in August after smaller gains the prior two months, curbing bets the Fed will reduce its $85 billion monthly pace of bond purchases this month. Equities briefly trimmed gains after Russian President Vladimir Putin said his nation will assist Syria if it’s attacked.
“A weak payrolls number suggests they’ll taper very slowly,” Sameer Samana, the St. Louis-based international strategist at Wells Fargo Advisors LLC, said by phone. His firm oversees about $1.3 trillion. “It keeps the Fed on the easing side rather than the aggressive tapering back side, and that should be good for all markets.”
The iShares MSCI Emerging Markets Index exchange-traded fund rose 1.5 percent to $39.98, gaining for a seventh day in the longest rally since December. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, gained 1.3 percent to 26.22.
Brazil’s Ibovespa jumped 2.7 percent, capping the biggest weekly advance since October 2011, as Eike Batista’s OGX soared. The measure rose 19 percent from its July 3 low, approaching a bull market. The real climbed for a second day.
Russian stocks posted the biggest weekly gain since December 2011 as crude advanced. The Micex Index added 0.1 percent in Moscow for an increase of 4.3 percent in the week. OAO Gazprom, Russia’s natural gas export monopoly, gained 1.4 percent. Poland’s WIG20 Index jumped 1.7 percent, while the Borsa Istanbul National 100 Index snapped a three-day slump, led by Akbank TAS and Turkiye Garanti Bankasi AS.
The S&P BSE Sensex rallied 1.5 percent in Mumbai, taking this week’s advance to 3.5 percent. ICICI Bank posted its best week in more than four years. The rupee rose for a third day.
The Shanghai Composite Index rose 0.8 percent, capping a gain of 2 percent for the week. Shanghai International Port (Group) Co. rose by the 10 percent daily limit today and has more than doubled over the past two weeks.
The premium investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 348 basis points, according to JPMorgan Chase & Co.