Emerging-Market Stocks Advance as Turkey Jumps to Record
Emerging stocks rose for the first time in four days, led by consumer companies. The Borsa Istanbul National 100 index climbed to a record, while Chinese shares declined the most in three weeks on property concerns.
Turkey’s Akfen Holding AS (AKFEN) jumped as its airport construction unit won a $400 million project abroad. Telekomunikacja Polska SA rose to a three-month high in Warsaw. South Korean stocks gained the most in Asia, led by exporters, as an earlier rally of the yen eased concern about loss of competitiveness to Japanese rivals. China Vanke Co. slumped on speculation the government is introducing more property curbs.
The MSCI Emerging Markets Index rose 0.4 percent to 1,046.18. The gauge rebounded after capping the longest slide in a month yesterday as Chinese output trailed estimates, prompting JPMorgan Chase & Co. to cut its outlook for the nation’s economy. Polish economic growth matched an 11-year low in the first quarter, boosting the case for further rate reductions by the nation’s central bank.
“The theme is that continued global monetary ease is going to fuel equity prices,” Walter ‘Bucky’ Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama, said by phone. “That’s pretty bullish for emerging markets, despite the weak data out of China.”
Eight out of 10 groups in the emerging-market gauge rose as consumer and technology shares added at least 0.8 percent. The broader measure slid 0.9 percent this year, compared with a 13 percent gain in the MSCI World Index.
The iShares MSCI Emerging Markets exchange-traded fund advanced 0.4 percent to $43.28. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, slid 0.3 percent to 19.31.
Brazil’s Ibovespa rose 0.4 percent as airline Gol Linhas Aereas Inteligentes SA jumped, while homebuilder Gafisa SA retreated. The index capped a four-day slump yesterday.
Borsa Istanbul index jumped 1.7 percent as Akfen Holding posted the biggest gain since April 29. More than a million shares traded, almost 70 percent of the three-month average daily volume, according to data compiled by Bloomberg.
Poland’s benchmark measure added 1.4 percent as Telekomunikacja Polska added 3.8 percent.
Russian equities fell for a third day as OAO Lukoil and OAO Gazprom, companies with the biggest weighting on the Micex Index, dropped as they traded without the right to a dividend. The Micex Index dropped 0.8 percent, the most since April 17.
Samsung Electronics Co. (005930), the world’s biggest maker of mobile phones, and Hyundai Motor Co. (005380) added more than 1.5 percent in Seoul. The Kospi Index gained 1 percent as the yen gained the most in two weeks, before reversing its advance. The dollar rose against the yen for a fifth straight day, the longest winning streak since November.
The Shanghai Composite Index fell 1.1 percent as China Vanke, the biggest developer, capped the biggest drop since April 25. Hang Seng China Enterprises Index (HSCEI) dropped 0.7 percent. Indian stocks climbed, with the benchmark index rebounding from its biggest drop in a year, after inflation slowed to a 41-month low. Emaar Properties PJSC surged 3.1 percent, helping lift Dubai’s benchmark index to the highest since October 2009 as the real estate market outlook improved.
The extra yield investors demand to own emerging-market debt over U.S. Treasuries dropped six basis points, or 0.06 percentage point, to 261 basis points, according to JPMorgan Chase & Co.’s EMBI Global Diversified Index.