Emerging-Market Stocks Rise Most in Four Weeks on China, Oil
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By Michael Patterson and Fabio Alves
June 1 (Bloomberg) -- Emerging-market stocks climbed the most in four weeks after China’s manufacturing expanded for a third month, boosting commodities prices and spurring speculation the global economy is recovering.
PetroChina Co. led a 3.4 percent advance in the Shanghai Composite Index. Brazil’s Bovespa index jumped to a nine-month high as metals producers rallied. Russia’s RTS Index added 7.3 percent, topping gains worldwide, after UBS AG said the country’s shares may surge another 30 percent this year. Developing-nation currencies strengthened, led by South Korea’s won, Colombian’s peso and Hungary’s forint.
“We see green shoots; everybody is talking about them,” Hans Goetti, who oversees about $10 billion as chief investment officer at LGT Bank in Liechtenstein (Singapore) Ltd., said in an interview on Bloomberg Television. “A lot of people are underweight equities at this point in time and are dying to get in.”
The MSCI Emerging Markets Index rose 3.8 percent to 802.21 at 5:09 p.m. in New York, the most since May 4. The gauge surged 61 percent since Feb. 27, the steepest advance since its inception in December 1987, on speculation the worst of the global recession is over. The increase outpaced a 32 percent rally in MSCI’s developed-market stock measure.
All developing-nation equity markets open for trading advanced, except Pakistan’s Karachi Stock Exchange 100 Index, after China’s manufacturing report bolstered confidence that Premier Wen Jiabao’s 4 trillion yuan ($586 billion) stimulus package is fueling growth in the world’s third-largest economy.
PetroChina, Vale
The official Purchasing Manager’s Index was at a seasonally adjusted 53.1 in May after registering 53.5 in April, the Federation of Logistics and Purchasing said today in Beijing. A reading above 50 indicates an expansion.
PetroChina, the world’s biggest company by market value, added 3.7 percent in Shanghai. Crude oil rose to the highest since November in New York trading, climbing 2.8 percent to $68.18 a barrel.
In Latin America, Brazil’s Bovespa jumped 2.4 percent led by commodities producers. Vale, the world’s biggest iron ore producer, soared 4 percent. Gerdau SA, Latin America’s largest steelmaker, rose 4.3 percent. China is the world’s biggest metals user.
Mexico’s Bolsa advanced 3.2 percent. Peru’s Lima General index surged 4.6 percent.
Russian Stocks
OAO Gazprom, Russia’s biggest natural-gas producer, advanced 7.3 percent and OAO Sberbank, Russia’s biggest bank, surged 17 percent.
The rally in Russian stocks “has not run out of steam,” and an improvement in the economy in the third quarter may help the nation’s dollar-denominated RTS Index gain another 30 percent this year, UBS said.
Colombian’s peso appreciated 1.8 percent against the dollar, the biggest advance among 26 developing nations currencies tracked by Bloomberg. Hungary’s forint gained 1.7 percent against the dollar and South Korea’s won advanced 1.5 percent.
The extra yield investors demand to own developing nations’ bonds instead of U.S. Treasuries narrowed 29 basis points, or 0.29 percentage point, to 4.31 percentage points, according to JPMorgan Chase & Co.’s EMBI+ index.
To contact the reporters on this story: Michael Patterson in London at mpatterson10@bloomberg.net; Fabio Alves in New York at falves3@bloomberg.net
Last Updated: June 1, 2009 17:26 EDT
Share | Email | Print | A A A
By Michael Patterson and Fabio Alves
June 1 (Bloomberg) -- Emerging-market stocks climbed the most in four weeks after China’s manufacturing expanded for a third month, boosting commodities prices and spurring speculation the global economy is recovering.
PetroChina Co. led a 3.4 percent advance in the Shanghai Composite Index. Brazil’s Bovespa index jumped to a nine-month high as metals producers rallied. Russia’s RTS Index added 7.3 percent, topping gains worldwide, after UBS AG said the country’s shares may surge another 30 percent this year. Developing-nation currencies strengthened, led by South Korea’s won, Colombian’s peso and Hungary’s forint.
“We see green shoots; everybody is talking about them,” Hans Goetti, who oversees about $10 billion as chief investment officer at LGT Bank in Liechtenstein (Singapore) Ltd., said in an interview on Bloomberg Television. “A lot of people are underweight equities at this point in time and are dying to get in.”
The MSCI Emerging Markets Index rose 3.8 percent to 802.21 at 5:09 p.m. in New York, the most since May 4. The gauge surged 61 percent since Feb. 27, the steepest advance since its inception in December 1987, on speculation the worst of the global recession is over. The increase outpaced a 32 percent rally in MSCI’s developed-market stock measure.
All developing-nation equity markets open for trading advanced, except Pakistan’s Karachi Stock Exchange 100 Index, after China’s manufacturing report bolstered confidence that Premier Wen Jiabao’s 4 trillion yuan ($586 billion) stimulus package is fueling growth in the world’s third-largest economy.
PetroChina, Vale
The official Purchasing Manager’s Index was at a seasonally adjusted 53.1 in May after registering 53.5 in April, the Federation of Logistics and Purchasing said today in Beijing. A reading above 50 indicates an expansion.
PetroChina, the world’s biggest company by market value, added 3.7 percent in Shanghai. Crude oil rose to the highest since November in New York trading, climbing 2.8 percent to $68.18 a barrel.
In Latin America, Brazil’s Bovespa jumped 2.4 percent led by commodities producers. Vale, the world’s biggest iron ore producer, soared 4 percent. Gerdau SA, Latin America’s largest steelmaker, rose 4.3 percent. China is the world’s biggest metals user.
Mexico’s Bolsa advanced 3.2 percent. Peru’s Lima General index surged 4.6 percent.
Russian Stocks
OAO Gazprom, Russia’s biggest natural-gas producer, advanced 7.3 percent and OAO Sberbank, Russia’s biggest bank, surged 17 percent.
The rally in Russian stocks “has not run out of steam,” and an improvement in the economy in the third quarter may help the nation’s dollar-denominated RTS Index gain another 30 percent this year, UBS said.
Colombian’s peso appreciated 1.8 percent against the dollar, the biggest advance among 26 developing nations currencies tracked by Bloomberg. Hungary’s forint gained 1.7 percent against the dollar and South Korea’s won advanced 1.5 percent.
The extra yield investors demand to own developing nations’ bonds instead of U.S. Treasuries narrowed 29 basis points, or 0.29 percentage point, to 4.31 percentage points, according to JPMorgan Chase & Co.’s EMBI+ index.
To contact the reporters on this story: Michael Patterson in London at mpatterson10@bloomberg.net; Fabio Alves in New York at falves3@bloomberg.net
Last Updated: June 1, 2009 17:26 EDT