Emerging Stocks Advance as China Pledge Draws Bargain Hunters
- Gain trims developing-nation benchmark's 2015 drop to 15%
- Chinese stocks rise for a second day, led by small companies
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Emerging-market stocks rallied for a second day as China’s pledge to boost government spending emboldened investors to look for bargains among beaten down shares.
The rebound follows losses for developing-nation shares in 15 of the 19 weeks since April as China unexpectedly devalued the yuan, exacerbating a rout amid nervousness before a potential interest-rate increase in the U.S. Chinese Finance Minister Lou Jiwei said over the weekend official spending will rise 10 percent this year, and his department detailed government plans to speed up the construction of major projects, provide incentives for consumption and offer tax breaks to companies.