Emerging-market stocks advanced, erasing a weekly decline, after Ukrainian opposition leaders signed a peace agreement to end a deadly political crisis.
The MSCI Emerging Markets Index rose 0.9 percent to 959.26, bringing its weekly increase to 0.2 percent. Ukraine’s UX Index of equities extended a two-day rally to 7.2 percent and bonds jumped the most since Russia’s bailout pledge two months ago. OAO Gazprom, which sends more than half of its European gas exports via Ukraine, climbed in Moscow. Turkey’s lira led gains in 31 major currencies tracked by Bloomberg, while China’s yuan had its biggest weekly drop since 2011 in offshore trading.
Equities rose on prospects of a resolution to Ukraine’s crisis, which began when President Viktor Yanukovych rejected a European Union integration pact. After the worst violence since the start of the unrest killed at least 77 protesters and police this week, EU governments sent envoys to hammer out a peace deal. The agreement envisages snap presidential elections by December and a national unity government within 10 days.
“Tension from Ukraine seems to be abating,” Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $150 billion of assets, said by phone. “In the short run, it helps sentiment.”
The iShares MSCI Emerging Markets Index exchange-traded fund added 0.7 percent to $39.43. Twenty out of the 24 developing-nation currencies tracked by Bloomberg rose. The premium investors demand to own emerging-market debt over U.S. Treasuries fell 0.01 percentage point to 335 basis points, according to JPMorgan Chase & Co.
Brazil’s Ibovespa climbed for a third straight day as stronger-than-forecast quarterly results from companies including retailer Lojas Renner SA boosted confidence in the outlook for Latin America’s largest economy. The real jumped to a one-month high as a report showed higher-than-forecast foreign direct investment in January.
Russian stocks gained for the first time in four days as Gazprom added 0.7 percent. Ukraine’s yield on government bonds maturing in April 2023 dropped 89 basis points, the biggest retreat since Dec. 17, to 10.21 percent at 5:40 p.m. in Kiev. Turkey’s lira rose 1.1 percent.
The Shanghai Composite Index fell the most in six weeks as China Petroleum & Chemical Corp. tumbled, while the yuan extended this week’s loss to 0.81 percent in Hong Kong. India’s S&P BSE Sensex posted its biggest weekly gain in two months as Axis Bank Ltd. drove a rally in financial shares.