Most Emerging Stocks Decline Before China Data; Samsung Advances
Most emerging-market stocks fell as Chinese developers retreated and investors awaited data on the nation’s industrial production and retail sales. Samsung Electronics Co. (005930) led gains in technology companies.
Gemdale Corp. slid 2.1 percent in Shanghai after China Securities Journal reported the government may expand a property tax trial to as many as six cities. LS Corp. (006260), a maker of industrial cables, sank the most since May in Seoul after reporting a second-quarter loss. Samsung, the world’s biggest smartphone maker, climbed for the first time this week as Standard & Poor’s raised its credit rating.
More than 180 stocks rose while 160 fell on the MSCI Emerging Markets Index, which increased 0.1 percent to 947.41 at 12:12 p.m. in Hong Kong. China’s industrial production growth probably held at 8.9 percent in July while gains in retail sales accelerated to 13.5 percent from 13.3 percent, according to economists surveyed by Bloomberg. China’s consumer price index rose 2.7 percent last month, government data showed today, less than the 2.8 percent median estimate.
“Recent data from China is giving the impression that the worst is really over from a fundamental point of view,” said Attila Vajda, an analyst at ACB Securities Co. in Ho Chi Minh City. “Cautious investors are still waiting for the final proof.”
The Shanghai Composite Index (SHCOMP) fell 0.6 percent, erasing an early gain. South Korea’s Kospi Index rose 0.1 percent, with trading volumes 21 percent below the 30-day average. Exchanges in Indonesia, Malaysia, the Philippines and India are closed for holidays.
Samsung increased 1.6 percent. S&P raised its long-term corporate credit rating to A+ from A, citing expected “solid” measures of financial performance over the next 24 months.
South Korea’s won rose less than 0.1 percent against the dollar, while Thailand’s baht gained 0.2 percent. China’s yuan strengthened 0.1 percent.
A gauge of technology companies in the MSCI emerging markets gauge rose 0.4 percent, the most among 10 industry groups. The MSCI measure has lost 10 percent this year, compared with a 14 percent increase in the MSCI World Index of developed-country stocks. The developing-nation index trades at 10 times 12-month projected profit, compared with the MSCI World multiple of 14, data compiled by Bloomberg show.
To contact Bloomberg News staff for this story: Nguyen Kieu Giang in Hanoi at email@example.com
To contact the editor responsible for this story: Michael Patterson at firstname.lastname@example.org