Emerging Stocks Rise as Growth Optimism Outweighs Political Risk
- Equities selling at highest valuations since May 2014
- Lira drops to record low as S&P cuts Turkey’s credit rating
Turkey Volatility: More Downside for Markets?
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Emerging-market stocks rose for the ninth time in 10 days, pushing valuations to the highest level in 14 months, as growing confidence that the world economy is improving outweighed a rising tide of political risks. The lira fell to a record low as S&P Global Ratings cut Turkey’s credit rating.
The MSCI Emerging Markets Index rose 0.3 percent to 870.76. The gauge trades at 12.3 times the projected earnings of its members, above the 10-year average multiple of 11.2. Stock gauges in Hungary and Poland each gained 0.6 percent. A measure of developing-nation exchange rates rose, ending a three-day decline, as gains in China’s yuan and the Philippine peso outweighed the Lira’s slump.