Emerging-market stocks gained, capping a second weekly advance, as a surge in German business confidence bolstered optimism about global growth. Brazil’s real jumped on speculation airport concessions will boost inflows.
The MSCI Emerging Markets Index advanced 0.5 percent to 1,009.17. The Borsa Istanbul National 100 Index jumped to a two-week high, while OAO RusHydro paced a rally in Russian utility shares. China Life Insurance Co. drove financial companies higher. The real led gains among the 31 major currencies tracked by Bloomberg as the government sold Brazil’s second-busiest airport for nearly four times the minimum bid.
Stocks joined gains in global equities after data showed German business confidence surged to the highest level in more than 1 1/2 years, signaling that the recovery in Europe’s largest economy remains on track. Today’s airport auction in Brazil is part of a program by President Dilma Rousseff to attract investments to modernize infrastructure and boost expansion in Latin America’s largest economy.
“Confidence is good,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $150 billion, said by phone. “Improving confidence on the part of business would be something you’d look for if you’re expecting to see a pickup in investment in manufacturing.”
All 10 groups in the MSCI Emerging Markets Index rose, led by utility and financial stocks. The iShares MSCI Emerging Markets Index exchange-traded fund rose 0.7 percent to $42.05. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, retreated 3.3 percent to 23.36.
The Ibovespa snapped two days of losses as miner MMX Mineracao & Metalicos SA jumped the most in three weeks. Brazil’s real rallied for the first time in four days. The Aeroportos do Futuro group led by Odebrecht SA, and including Singapore airport operator Changi Airport Group, offered 19 billion reais ($8.3 billion) and won the right to operate Galeao airport in Rio de Janeiro. The offer compares with the minimum required bid of 4.83 billion reais.
The Borsa Istanbul National 100 Index gained 1.3 percent, led by Turkiye Garanti Bankasi AS. Russia’s Micex Index extended its weekly advance as RusHydro jumped 3.2 percent. Stock gauges in the Czech Republic and Poland also rose.
The benchmark index for Chinese stocks in Hong Kong capped its biggest weekly gain since December 2011 as insurers climbed, widening a premium over Shanghai shares. China Life Insurance jumped 2.7 percent, while Ping An Insurance (Group) Co. rallied to its highest level since August 2011. Chinese insurers will outperform in 2014, HSBC Holdings Plc said.
India’s S&P BSE Sensex declined for a third week as concerns the rupee will weaken further offset bullish recommendations from CLSA Asia-Pacific Markets and Credit Suisse Group AG. Tata Motors Ltd. slid 2.4 percent, while Cigarette maker ITC Ltd. dropped to the lowest in 11 weeks.
Thailand’s baht had a fourth weekly loss as stocks and sovereign bonds dropped amid concern political unrest will further damp economic growth. The baht depreciated 0.8 percent from a week ago to 31.835 per dollar as of 4:42 p.m. in Bangkok, according to data compiled by Bloomberg. The SET Index sank 4.3 percent this week.
The premium investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 331 basis points, according to JPMorgan Chase & Co.