Emerging Stocks Rise as Chinese Manufacturing Slump Stabilizes
- Technology, raw-material stocks lead gains in MSCI index
- Investors seek bargains after worst stocks rout in four years
Stabilizing Chinese PMI Offers Investors Some Reassurance
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Emerging-market equities rose for a second day as signs China’s manufacturing is stabilizing gave investors confidence to hunt for bargains after the worst quarter in four years.
While data showed Chinese factory output continued to slump in September, the pace of the contraction unexpectedly slowed, easing concern that the world’s second-biggest economy will act as a drag on global growth. Assets in some nations that count China among their biggest trading partners rallied. Shares in Johannesburg headed for the biggest two-day advance since Sept. 17 as the rand strengthened to a one-week high against the dollar. Markets in Shanghai and Hong Kong were closed for a holiday.