Emerging Stocks Snap Two-Day Decline as Indian Rupee Rallies
Emerging-market stocks climbed for the first time in three days as Sihuan Pharmaceutical Holdings Group Ltd. (460) led a rally for health-care companies. India’s rupee rose to the strongest level in seven months versus the dollar.
Sihuan Pharmaceutical Holdings Group Ltd. rose 3.5 percent in Hong Kong after reporting profit that beat estimates. HTC Corp. (2498) jumped to a three-month high in Taipei after Deutsche Bank AG upgraded the stock. The rupee gained for a sixth day, headed for the longest winning streak since January 2012. South Korea’s won and Malaysia’s ringgit added 0.2 percent. The Shanghai Composite Index (SHCOMP) erased earlier gains.
The MSCI Emerging Markets Index advanced 0.1 percent to 956.24 as of 2:15 p.m. in Hong Kong. The measure slid the most in a week yesterday after data showed Chinese exports plunged 18 percent last month, adding to concerns the economic slowdown is deepening. A gauge of health-care companies have risen 4.1 percent in the past month, compared with the developing-nation gauge’s 1.2 percent increase.
“It’s a short-term recovery after a big slump yesterday,” Jitra Amornthum, the head of research at Finansia Syrus Securities Pcl, said by phone in Bangkok. “China is still the biggest concern for emerging markets and an economic recovery is a key driver for other developing countries.”
The MSCI emerging-market gauge has fallen 4.6 percent this year and trades at 10.2 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has gained 0.9 percent in 2014, and is valued at 14.9 times.
Seven out of 10 industry groups in the developing-nations gauge rose, led by health-care stocks and technology companies. Sihuan Pharmaceutical gained the most in a week. Full-year net income rose to 1.3 billion yuan ($212 million), exceeding the 1.2billion-yuan median estimate in a Bloomberg survey.
HTC jumped 4.3 percent to the highest level since Dec. 10 after Deutsche Bank upgraded the stock to hold from sell. Taiwan’s Taiex Index climbed 0.4 percent.
Thailand’s SET Index rose 0.8 percent, on course for the highest close since Dec. 11, while the Philippine Stock Exchange Index headed for a four-month high. Vietnam’s VN Index increased 0.7 percent while gauges in Pakistan and Malaysia added at least 0.3 percent.
India’s rupee rose 0.2 percent on speculation slowing inflation and a narrowing current-account deficit will spur overseas purchases of the nation’s assets. Consumer-price gains probably eased to the lowest since at least January 2012, according to a Bloomberg survey of economists before data due tomorrow.
The S&P BSE Sensex (SENSEX) retreated 0.3 percent, halting a five-day gain. The Shanghai Composite Index slid 0.3 percent as credit growth slowed more than estimated last month. The measure is heading for the lowest close since Jan. 20. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong lost 0.1 percent, its second day of declines.
To contact the reporter on this story: Anuchit Nguyen in Bangkok at firstname.lastname@example.org