Jakarta - Emerging-market stocks rose, with the benchmark index heading for a one-week high, after Chinese brokerages rallied and US housing data eased concerns the Federal Reserve will reduce stimulus.
Haitong Securities Co. advanced 4.1 percent in Hong Kong after the Shanghai Stock Exchange said it may allow same-day trading. Gold Fields Ltd. surged 3.7 percent in Johannesburg and Zhaojin Mining Industry Co., a Chinese gold producer, jumped 8 percent after bullion rose above $1,400 an ounce last week.
The won strengthened 0.4 percent against the dollar, the ruble climbed 0.2 percent, while the Indian rupee weakened 1.3 percent.
The MSCI Emerging Markets Index added 0.5 percent to 937.76 as of 4:08 p.m. in Hong Kong, its second day of gains.
The Shanghai exchange is mulling a move to a “T+0” settlement, which allows investors to buy and sell a stock on the same day, an unidentified exchange spokesman said yesterday on its Weibo microblogging platform.
A report last week showed new US home purchases plunged by the most in three years, while data today may show durable goods orders in the US fell.
“The market will remain volatile going forward until the Fed comes out with its actual decision,” Aldo Perkasa, a fund manager at PT Mandiri Manajemen Investasi, which has 22 trillion rupiah ($2 billion) of assets under management, said in Jakarta.
“Trading will be largely driven by news flow.”
All 10 industry groups in MSCI’s emerging markets index advanced, led by industrial and consumer-discretionary companies.
The broad measure has lost 11 percent this year, compared with a 13 percent increase in the MSCI World Index of developed-nation shares.
The developing-nation index trades at 10 times projected 12-month earnings, lower than the MSCI World’s 14 times, data compiled by Bloomberg show.
About $1.4 trillion has been erased from the market value of emerging-market equities since Fed Chairman Ben S. Bernanke said May 22 that policy makers could scale back bond buying.
The Shanghai Composite Index rose 1.9 percent on optimism that the nation’s economy is stabilising.
The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong gained 1.4 percent. Haitong Securities, China’s second-biggest listed brokerage, increased the most since Aug. 12. Citic Securities Co., the largest, climbed 2.5 percent.
“It’s a good news to have for the brokers and something we definitely will have in the future,” said Zhou Wei, an analyst at Founder Securities Co.
“The key is the timeframe and it’s for the CSRC to have a final decision on the matter.”
China currently operates a “T+1” settlement system. China has no timetable for T+0 stock trading, the Xinhua News Agency reported last month, citing an unidentified official at the China Securities Regulatory Commission.
The regulator didn’t immediately reply to a faxed query on their stance.
Gold Fields gained the most since August 16. Zhaojin Mining jumped in Hong Kong to an 11-week high.
Hedge funds and other speculators raised bets on higher gold prices to the most in six months as signs of slowing US growth drove bullion above $1,400 for the first time since June.
Plantation operator PT Astra Agro Lestari surged 17 percent in Jakarta, the biggest increase in the MSCI Emerging Markets Index, after palm oil advanced by the most in eight months.
The FTSE/JSE Africa All Shares Index rose 0.2 percent, while Russia’s Micex Index was little changed. South Korea’s Kospi index gained 1 percent as the won appreciated for a second day.
The rupee weakened 1.4 percent after surging 2.1 percent on August 23.
The rupiah slid 0.9 percent to its weakest level since April 2009.
Benchmark gauges in Vietnam and Thailand rose at least 0.7 percent.
Taiwan’s Taiex Index and the S&P BSE Sensex Index of Indian shares added at least 0.2 percent. - Bloomberg News