London - Emerging-market stocks rose to a three-month high as data showed China’s economy is improving and a Russian proposal to have Syria surrender its chemical weapons eased concern over a US strike.
India’s rupee rallied.
Russian equities were set for longest winning streak in more than three years and India’s S&P BSE Sensex Index jumped 3.8 percent as Bharti Airtel Ltd. climbed the most since July 2010.
The Hang Seng China Enterprises Index rose more than 20 percent from a June low, while Dubai’s index soared the most since December 2009, leading a rally in the Middle East.
The rupee strengthened 1.4 percent to the dollar, the largest gain among 24 emerging-market currencies monitored by Bloomberg.
The MSCI Emerging Markets Index added 1.3 percent to 986.52 at 11:11 a.m. in London.
China’s industrial output grew at the fastest pace in 17 months in August, adding to signs the world’s second-largest economy is rebounding.
The US said Russia’s proposal may avert a strike, easing concern that military action will escalate into a larger conflict in the Middle East.
“It’s mainly better Chinese data and a continuous improvement in investor sentiment towards China that is driving emerging markets these days,” Maarten-Jan Bakkum, a senior emerging-market strategist at ING Investment Management in The Hague, said by e-mail.
The US’s decision on Syria and next week’s Federal Reserve meeting are also “big events,” he said.
A 5.6 percent rally in the past five days has trimmed the MSCI Emerging Markets Index’s 2013 losses to 6.5 percent, compared with a 14 percent increase in the MSCI World Index.
The developing-nation gauge trades at 10.5 times projected 12-month earnings, trailing the 13.8 multiple for MSCI World, data compiled by Bloomberg show.
The Micex Index increased 0.7 percent in Moscow, taking this month’s advance to 7.1 percent, as all but six of the benchmark gauge’s 50 shares climbed.
OAO Uralkali soared 5.9 percent, extending yesterday’s 9.2 percent gain.
Arkady Rotenberg is seeking to buy billionaire Suleiman Kerimov’s stake in the potash producer, Kommersant reported, citing people it didn’t identify.
Poland’s WIG20 Index rose 2.3 percent and the benchmark FTSE/JSE Africa All Shares Index headed for the highest close on record in Johannesburg.
India’s benchmark gauge surged the most since May 2009 as Bharti Airtel jumped 7.8 percent in Mumbai after India’s telecommunications regulator recommended cutting reserve prices for the nation’s airwaves.
The BGCC200 Index of the Gulf Cooperation Council stocks rallied 3.1 percent, the biggest gain since March 2011.
Russia’s offer for Syria shifted the debate as President Barack Obama prepared to make his case for US military strikes in a nationally televised address tonight.
While questioning whether Syrian President Bashar al-Assad would yield control of his weapons stocks, Obama said on ABC News that a US attack would “absolutely” be put on hold if Syria conceded.
Dubai’s DFM General Index, which has posted the biggest swings in the world in the past month, jumped 8.5 percent.
Benchmark gauges in Qatar and Abu Dhabi climbed at least 4.9 percent.
Appetite for emerging-market assets has improved since weaker-than-forecast US payroll data on September 6 eased concern over the potential size of the Federal Reserve’s tapering after its September 17-18 meeting.
All 10 industry groups in MSCI’s emerging-markets index rose, led by technology and health care companies.
The rupee rallied for a fourth day, the longest winning streak since February, while the Philippine peso gained 1 percent and Malaysia’s ringgit added 0.4 percent.
The South Korean won strengthened 0.3 percent amid speculation the central bank is selling the currency to limit appreciation.
“Softer non-farm payrolls last week removed some of the pressure on US rates, which helped emerging-market currencies,” Martial Godet, the head of emerging-markets strategy at BNP Paribas SA in London, said by e-mail.
“Chinese data confirmed that the economy is growing slightly faster, which should support the improvement of earnings visible in the recent earnings season.”
China’s industrial output rose 10.4 percent last month, topping the 9.9 percent growth estimate in a Bloomberg News survey.
Data on retail sales and fixed-asset investment excluding rural households also exceeded estimates.
The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong climbed 1.6 percent to the highest level since May 29.
Yanzhou Coal Mining Co. jumped the most since October 2011.
South Korea’s Kospi index added 1 percent. Global funds were net buyers of South Korean stocks for the 13th day today, boosting their holdings by 813 billion won ($750 million), the most since September 2012, data from the stock exchange show.
The Philippine Stock Exchange Index rallied 1.6 percent to a two-week high after government data showed exports in July rose 2.3 percent from a year earlier, versus a median estimate for a 1 percent decline in a Bloomberg survey. - Bloomberg News