Emerging-market stocks rise

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Bullsandbears REUTERS A bull and a bear styrofoam figurine.

London - Emerging-market stocks rose as China Mobile Ltd. paced a rally by phone companies and Thai shares extended the longest winning streak in almost four years. Hungary’s forint led currencies higher.

China Mobile jumped 2.6 percent in Hong Kong after forming a cellular-tower joint venture, while the Shanghai Composite Index climbed the most in a month.

Gauges in Hungary, Turkey and Poland added at least 0.6 percent.

The forint ended a three-day retreat against the euro as industrial output rose, while the Russian ruble slid versus the dollar after fighting in Ukraine renewed the risk of sanctions.

The MSCI Emerging Markets Index increased 0.2 percent to 1,060.64 at 1:58 p.m. in London.

A gauge of developing-nation telecommunications companies rose 1 percent to the highest level in more than six months.

China reports second-quarter economic- growth figures this week, while Federal Reserve Chair Janet Yellen will deliver her semiannual testimony to two congressional committees on the outlook for the US economy.

“We’re seeing some rebound in EM today on the back of stabilisation in European risk sentiment,” Michael Wang, an emerging-market strategist in London at Amiya Capital LLP, said by e-mail.

There are “expectations that China data will show further stabilisation in growth,” he said.

The developing-nation gauge has gained 5.8 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show.

The MSCI World Index has risen 4.8 percent in 2014 and is valued at a multiple of 15.1.

 

Hungary’s Output

 

The forint appreciated 0.2 percent as official data showed industrial production rose 9.6 percent in May compared with a year earlier.

Hungary’s benchmark BUX index added 0.8 percent, led by OTP Bank Nyrt. and Mol Nyrt., the country’s largest refiner.

The Borsa Istanbul 100 Index climbed 1.4 percent, set for its highest level in more than a month and the biggest gainer among east European markets.

Turkcell Iletisim Hizmetleri AS., the nation’s biggest mobile-phone operator, rose 1.6 percent.

The FTSE/JSE Africa All Shares Index rose 0.7 percent in Johannesburg and the ADX General Index in Abu Dhabi advanced 1.5 percent to the strongest close since June 12.

The ruble slid 0.4 percent, depreciating for a third day, as fighting in south-east Ukraine rekindled concern further economic sanctions will be imposed on Russia.

The Micex Index fell 0.6 percent in Moscow, led by a 3.4 percent drop in OAO Lukoil.

 

Joint Venture

 

Eight out of 10 industry groups in the emerging-markets measure rose, led by telecommunications companies.

China Mobile increased the most in two months, while China Unicom (Hong Kong) Ltd. and China Telecom Corp. added at least 3.9 percent.

The carriers formed a venture to build telecommunications towers to help save on capital expenditure.

The Hang Seng China Enterprises Index gained 0.8 percent, its third day of advances.

The Shanghai Composite Index added 1 percent as utilities and consumer-staples shares gained on speculation profit will beat estimates.

China’s economy probably expanded 7.4 percent in the three months to June 30 from a year earlier, according to the median of 44 economists’ estimates compiled by Bloomberg before data scheduled for July 16.

Thailand’s SET Index added 0.7 percent in its 12th day of gains, taking the gauge to its highest close since June 2013.

Global funds have bought a net $1.5 billion of Thai stocks and bonds this month, exchange data show.

 

Thai Stimulus

 

Thailand’s military government plans new measures to stimulate tourism and will establish special economic zones along the country’s borders, junta leader Prayuth Chan-Ocha said on July 11.

The administration will also follow up on investment projects approved in the past two years, he said.

The Philippine Stock Exchange Index sank 1 percent, the most among benchmark gauges in Asia.

President Benigno Aquino’s popularity fell to record lows in two surveys as he prepared to address the country in response to an outcry over stimulus spending that was partially voided by the top court.

Indonesia’s rupiah weakened 0.7 percent, the biggest decliner among the 24 emerging-market currencies monitored by Bloomberg.

The premium investors demand to own emerging-market debt over US Treasuries fell two basis point to 262, according to JPMorgan Chase & Co. indexes. - Bloomberg News



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