London - Stocks in emerging nations advanced to a four-month high and Turkey entered a bull market after the Federal Reserve refrained from cutting stimulus.
The ringgit climbed the most since the 1998 Asian financial crisis.
The MSCI Emerging Markets Index added 2.4 percent to 1,024.88 at 11:05 a.m. in New York, set for the highest since May.
The Borsa Istanbul National 100 Index surged 6.4 percent, the most among the 94 world gauges tracked by Bloomberg, extending a gain from its August low to 21 percent.
Russia’s RTS Index rose 3.4 percent and India’s shares increased to a three-year high.
The Malaysian currency climbed 2.6 percent, while Indonesia’s rupiah jumped the most in 15 months.
The Federal Open Market Committee yesterday refrained from reducing the $85 billion pace of its monthly securities buying, sending global stocks higher as investors repositioned for a more accommodative central bank.
The measure for stocks in developing nations has slid as much as 16 percent since May 22, when the Fed signaled its asset-buying program could be trimmed if the economy showed sustained improvement.
“The good news was that the markets don’t have to worry about the taper they were concerned about,” Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland said by phone.
“They set up pretty strong expectations they would begin to taper.”
All 10 groups in the MSCI Emerging Markets Index rose today as financial and energy shares had the biggest gains.
The measure for developing markets trimmed this year’s decline to 2.9 percent, trading at 10.8 times projected earnings, according to data compiled by Bloomberg.
That trails the 14.2 valuation of the MSCI World Index.
The iShares MSCI Emerging Markets Index exchange-traded fund, the developing-nation ETF, fell 1.1 percent to $42.82.
The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, was unchanged at 22.87.
Brazil’s Ibovespa fell for the first time in five days as pulp maker Fibria Celulose SA led exporters lower.
The real retreated from a three-month high after Finance Minister Guido Mantega said that the central bank may curtail its intervention in the foreign-exchange market.
Brazilian state development bank president Luciano Coutinho said he expects currency volatility to increase because the Fed didn’t start tapering.
“For us, the sooner it starts and ends, the better,” Coutinho said in an interview at Bloomberg’s headquarters in New York yesterday.
“I would rather see it start today and have some date to finish because then we will feel the whole impact. The worst thing is the uncertainty.”
The Micex Index climbed 1.5 percent, the highest since March 15.
OAO Sberbank, the nation’s largest lender, rose 2.8 percent.
The ruble headed for a record streak of gains against the dollar, advancing for a 10th consecutive day.
The Borsa Istanbul National 100 Index jumped the most since May 2010.
Turkiye Garanti Bankasi AS, the nation’s largest bank by market value, climbed 13 percent, cappping the biggest increase since October 2008.
The FTSE/JSE Africa All Shares Index jumped 2.2 percent in Johannesburg as AngloGold Ashanti Ltd. and Harmony Gold Mining Co. gained at least 6.5 percent.
India’s S&P BSE Sensex climbed 3.4 percent to the highest level since November 2010.
Yes Bank Ltd. jumped 22 percent, leading a measure of 13 lenders to a two-month high.
Tata Steel Ltd. surged 7 percent. The rupee increased to the highest level in more than a month.
The Jakarta Composite Index rallied 4.7 percent to a one- month high, while the rupiah rose the most since May 2012.
Benchmark stock gauges in Thailand, the Philippines and Malaysia added at least 1.2 percent.
The ringgit rallied the most since September 1998.
The Hang Seng China Enterprises Index, also known as the H- share index, rose 1.7 percent.
Li & Fung Ltd., a supplier of toys and clothes that gets most its revenue from the US, rose 2.6 percent.
Zhaojin Mining Industry Co., China’s No. 2 gold producer, surged 12 percent.
The premium investors demand to own emerging-market debt over US Treasuries slid 12 basis points, or 0.12 percentage point, to 322 basis points, according to JPMorgan Chase & Co. - Bloomberg News