Emerging Stocks Rise on Syria While Apple Suppliers SinkJulia Leite, Maria Levitov and Sharon Cho
Emerging-market stocks advanced to a three-month high after President Barack Obama delayed a decision on military action against Syria. Apple Inc.’s Asian suppliers paced declines among technology companies.
The MSCI Emerging Markets Index added 0.1 percent to 991.94. Philippine stocks led gains among developing-nation stocks, while benchmark gauges in Egypt and Dubai rose. Hon Hai Precision Industry Co., the Taiwan-based assembler of iPhones, slid after Apple unveiled a cheaper version of the device. Brazil’s Ibovespa extended a two-day decline to 1.3 percent.
President Obama asked Congress to delay a vote authorizing the use of military force while the administration pursues a proposal that would have Syria surrender its chemical arms. A measure of technology companies in the MSCI Emerging Markets Index declined as Apple extended a two-day plunge to 7.6 percent. The Cupertino, california-based company announced yesterday two new iPhones, including a cheaper $99 version.
“The issue with Syria was primarily about uncertainty and the market has no appetite for uncertainty,” David Sowerby, who helps oversee about $190 billion at Loomis Sayles & Co. in Bloomfield Hills, Michigan, said in a phone interview. “At least some of that was removed.”
The iShares MSCI Emerging Markets Index exchange-traded fund, the developing-nation ETF, climbed 0.1 percent to $41.37. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, fell 3.2 percent to 25.05.
Brazil’s Ibovespa dropped 0.8 percent as homebuilder PDG Realty SA Empreendimentos e Participacoes led lossed among companies that sell domestically.
Russian stocks extended their longest winning streak in more than three years to an eighth day after crude oil rose. OAO Novatek climbed after Chinese banks agreed to finance its Yamal LNG project. Benchmark gauges in Hungary, Poland and the Czech Republic advanced more than 0.5 percent. Turkish shares were little changed.
Egypt’s EGX 30 Index capped a four-day rally. Dubai’s DFM General Index extended a two-day gain to 8.9 percent.
Most Indian equities climbed after foreigners boosted holdings of local shares by the most since May as the rupee had its best run in almost a year. State Bank of India rose to a one-month high, sending a gauge of 13 lenders to a six-week high. The rupee rose 0.8 percent. The Philippine Stock Exchange Index rose the most since Aug. 30
The Shanghai Composite Index rose to the highest level since June 6. Aluminum Corp. of China Ltd., also known as Chalco, surged 9.9 percent, driving a gauge of material stocks to the biggest gain among industry groups. Apple’s Asian supplier Hon Hai Precision slid 1.3 percent in Taipei, while LG Display Co. sank 3.1 percent in Seoul.
The premium investors demand to own emerging-market debt over U.S. Treasuries was unchanged at 343 basis points, according to JPMorgan Chase & Co.