Emerging stocks rose as India’s shares rallied to a record after economic growth beat estimates. Dubai’s gauge gained, led by the developer of the world’s tallest tower, while the ruble sank to an all-time low.
Emaar Properties PJSC jumped to a six-year high after the Dubai developer said it plans to sell at least 15 percent of its mall unit. ICICI Bank led Indian equities higher, while the Shanghai Composite Index added 0.8 percent. The ruble fell 0.5 percent as fighting in Ukraine fueled speculation Russia will face wider sanctions. Brazilian stocks declined, erasing earlier gains as investors weighed the outlook for next month’s elections.
The MSCI Emerging Market Index gained 0.3 percent to 1,090.57 in New York. China’s manufacturing slowed more than estimated last month, data showed today, joining weaker-than-anticipated credit, production and investment data in suggesting the economy is losing momentum. India’s gross domestic product grew 5.7 percent last quarter from a year ago.
“Poor Chinese manufacturing data has led to increased expectations of policy stimulus,” Michael Wang, an emerging-markets strategist in London at Amiya Capital LLP, said by e-mail. “Strong second-quarter GDP data is driving gains in India and EMEA is broadly flat due to a rise in Ukraine tensions.”
The MSCI emerging-nation measure is up 8.8 percent this year and trades at 11.3 times estimated 12-month earnings. The MSCI World Index of developed country stocks has gained 5.3 percent and trades at a multiple of 15.1. Eight of 10 industry groups in the emerging-markets gauge climbed, led by energy stocks.
Dubai’s benchmark DFM General Index, whose shares were added to the developing-country gauge this year, rose the most among 94 global equity indexes tracked by Bloomberg with a gain of 1.5 percent. Emaar Properties PJSC, which is focusing on hotel and mall revenue to cushion itself from shocks in the emirate’s property market, soared 4.5 percent.
The company said yesterday it will distribute 5.3 billion dirhams ($1.44 billion) of the proceeds from selling the malls stake as a dividend.
Brazil’s Ibovespa fell 0.2 percent in Sao Paulo, erasing an earlier advance of as much as 1.6 percent. Investors awaited a debate among presidential candidates after a poll showed Marina Silva will probably beat President Dilma Rousseff in a runoff vote. Brazil’s benchmark equity index has gained 36 percent from this year’s low March 14 on bets a new government will pare intervention in the economy and improve fiscal policy, paving the way for growth.
Russia’s Micex Index dropped 0.6 percent. Pro-Russian rebels attacked two Ukrainian coast-guard vessels, hours after European Union governments agreed to impose new sanctions on Russia if the conflict worsens.
While Russia won’t intervene militarily in Ukraine, it’s unrealistic to demand that rebels put down arms, Russian Foreign Minister Sergei Lavrov said today. The ruble fell the most among its peers in developing Europe.
Poland’s benchmark WIG30 equities index added 1.1 percent after Prime Minister Donald Tusk was appointed European Union president. The zloty appreciated 0.1 percent versus the euro in the second day of gains.
The premium investors demand to own developing-country debt over U.S. Treasuries narrowed one basis point to 280, according to JPMorgan Chase & Co. indexes.
ICICI Bank advanced 2.7 percent in Mumbai. The Sensex added 0.9 percent, taking its increase this year to 27 percent.
The Hang Seng China Enterprises Index was little changed while the Shanghai Stock Exchange Composite Index climbed to the highest level since Aug. 22.
China’s Purchasing Managers’ Index was at 51.1 for August, missing the median 51.2 estimate in a Bloomberg survey. The final reading of a separate manufacturing gauge from HSBC Holdings Plc and Markit Economics was 50.2. Both readings fell from 51.7 in July and remain above 50, indicating expansion.
The Jakarta Composite Index advanced 0.8 percent. Indonesia had a trade surplus of $124 million in July, compared with a $305 million shortfall in June and the $406 million deficit estimated in a Bloomberg survey, figures showed today.
Samsung Engineering Co. soared 13 percent in Seoul and Samsung Heavy Industries Co. jumped 6.2 percent. Samsung Group, whose billionaire chairman has been hospitalized since May, will merge its shipbuilding and engineering units before the end of the year in a deal valued at about $2.5 billion, according to regulatory filings today.