Emerging Stocks Gain Most in Nine Weeks on Greek Talks Outlook

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Emerging-market stocks jumped the most in nine weeks and currencies gained as European policy makers signaled that a break in a months-long impasse in talks over a Greek bailout may be imminent.

The MSCI Emerging Markets Index rose 1.3 percent to 987.30. The Athens Stock Exchange index rallied 9 percent, climbing for a third day. Equities in Poland, India and Taiwan advanced at least 1.3 percent. The Turkish lira strengthened 1.1 percent as a Bloomberg gauge of 20 developing-nation currencies jumped to a four-week high.

Greek Prime Minister Alexis Tsipras helped spur appetite for riskier assets on Monday as his new offer drew a rare positive nod from European officials. An accord by the end of the week is “possible but it’s not yet certain,” said at an emergency euro-area summit in Brussels. Concern that Greece will miss a debt payment and leave the European currency union contributed to a five-week selloff in emerging-nation equities.

Monday’s gains were “all Greece-hope related,” Peter Attard Montalto, an emerging-market strategist at Nomura International Plc, said by e-mail from London.

All 10 industry gauges in the MSCI Emerging Markets Index advanced, led by utility and financial stocks.

Investors added money to U.S. exchange-traded funds that invest in emerging markets for the first time in three weeks last week, led by Brazil, where funds collected $144.6 million, according to data compiled by Bloomberg.

Brazil, Russia

The Ibovespa rose 0.2 percent after posting three straight weekly increases. Banco Bradesco SA led the advance Monday, jumping 1.1 percent as Brazilian lenders rallied.

The ruble strengthened 0.1 percent against the dollar as companies bought the Russian currency to meet tax deadlines and government officials said they’re comfortable with the exchange rate. The Micex Index gained 0.5 percent.

A Bloomberg gauge of developing-nation currencies appreciated 0.3 percent. The premium investors demand to own emerging-market debt over U.S. Treasuries narrowed 12 basis points to 341 basis points, according to JPMorgan Chase & Co. indexes.

Officials meeting in Brussels on Monday said progress had been made toward meeting the terms of creditors, including in the contentious areas of pensions and revenue. While the set of reform measures was delivered too late for a full appraisal by euro-area finance chiefs, unlike prior proposals it wasn’t rejected out of hand and officials said it could form a basis for a deal.

“The meeting will be a crucial one for Greece to determine its fate in the currency union,” Agus Yanuar, president director at PT Samuel Aset Manajemen, said by phone from Jakarta. “However the impact for emerging markets as a whole, especially for investors in Asia, might not be too significant.”

A gauge of Hong Kong-traded mainland shares increased 1.5 percent after posting its worst week since 2012. The Shanghai Composite Index tumbled 13 percent last week, entering a correction after falling more than 10 percent from its June 12 high. Mainland markets were closed Monday for a holiday.

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