Emerging Stocks Climb for Second Day as Oil Boosts Energy Shares

Emerging-market stocks climbed for a second day and currencies rallied with bonds as a rebound in crude prices lifted energy producers and Greece’s retreat from its call for a debt writedown fueled appetite for riskier assets.

OAO Lukoil jumped 3.7 percent in Moscow, while Sasol Ltd. advanced to a two-month high in Johannesburg. Petroleo Brasileiro SA paced a 2.8 percent gain in Brazilian stocks. Lenovo Group Ltd. gained the most since April 2013 in Hong Kong after its earnings beat estimates. Russia’s ruble led emerging-market currencies higher against the dollar.

The MSCI Emerging Markets Index rose 1.3 percent to 976.50. Oil rose for a fourth day, moving into a bull market on speculation crude’s collapse to the lowest level in almost six years will prompt producers to scale back output and reduce a glut. Greece’s government dropped calls for a debt writedown in favor of a debt exchange, according to a person who attended a meeting of about 100 financiers in London late on Monday.

“It is some relief that the Greek leadership has become a bit more nuanced in the past days,” Maarten-Jan Bakkum, an emerging-market strategist at ING Groep NV in The Hague, said by e-mail. “Oil prices have been rising, that takes some pressure off the energy exporters and the liquidity environment for EM remains good.”

Oil Rally

Nine of 10 industry groups in the emerging-market index rose, led by a 4.7 percent advance by energy producers. Cnooc Ltd. climbed the most in a month in Hong Kong. Petrobras jumped 15 percent, the biggest gain since September 1998. Emaar Properties PJSC led a 2.5 percent rally in Dubai stocks. Equity indexes in Abu Dhabi and Qatar climbed at least 1.3 percent

Brent crude climbed 5.8 percent to $57.91 a barrel. That’s more than 20 percent higher than it’s Jan. 13 settlement.

The ruble strengthened 5 percent and Russian bonds rallied as higher oil prices eased pressure on the nation’s finances. The Finance Ministry will offer 10 billion rubles ($153 million) of floating-rate notes on Wednesday, double the size of last week’s plan, after Russia’s borrowing costs fell to a seven-week low.

The premium investors demand to hold emerging-market debt over U.S. Treasuries narrowed 16 basis points to 377 basis points, according to JPMorgan Chase & Co. indexes. A gauge of developing-nation currencies increased 1.2 percent.

Lira Rally

Turkey’s lira strengthened 1.2 percent against the dollar after the country’s central bank said policy makers won’t convene for an emergency rates meeting. A January slowdown in consumer inflation failed to meet the lender’s criteria for an emergency cut.

Lenovo, a Chinese maker of personal computers and smartphones, jumped 7.3 percent in Hong Kong. The company posted a $253 million profit in the quarter ended December, exceeding the $182.4 million average of analysts’ estimates compiled by Bloomberg.

The Shanghai Composite Index climbed 2.5 percent, halting a five-day, 7.5 percent slump, as financial companies rallied amid speculation the government will take steps to bolster economic growth. The central bank injected 90 billion yuan ($14.4 billion) into the money markets today to avoid a cash crunch amid new share offerings and before lunar new year holidays.

MSCI’s developing nation gauge has gained 2.1 percent this year and is valued at 11.6 times 12-month projected earnings. The MSCI World Index has gained 0.3 percent in 2015 and trades at a multiple of 16.2.

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