Emerging stocks rise for sixth day

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Bullsandbears REUTERS A bull and a bear styrofoam figurine.

Manila - Emerging-market stocks rose for a sixth day as a rally by telecommunication and energy shares overshadowed Chinese data showing the nation’s housing slump deepened. Russia’s ruble strengthened.

China Mobile advanced to the highest level in almost six years as Nomura Holdings lifted its price target.

Gazprom gained 1.1 percent to lead gains in Russia.

Hyundai Motor, South Korea’s largest automaker, slumped for a second day after workers endorsed a possible strike.

The ruble climbed 0.5 percent against the dollar after the central bank widened its trading range against a basket of currencies.

The MSCI Emerging Markets Index rose 0.1 percent to 1,075.54 at 9:14 am in London.

Ukrainian Foreign Minister Pavlo Klimkin and his Russian counterpart Sergei Lavrov met in Berlin in talks seeking to ease tension.

German Foreign Minister Frank-Walter Steinmeier said after the discussion that there was some progress made.

“A truce will de-escalate tensions between Russia and Ukraine and a peaceful resolution could spur a short-term rally,” said Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank.

“While the continued flow of negative data out of China supports the outlook for stronger stimulus, some investors are getting jittery about what this weakness poses to global growth amid geopolitical risk.”

China’s new-home prices declined in July in almost all cities that the government tracks as tight mortgage lending deterred buyers even as local governments eased property curbs.

The Hang Seng China Enterprises Index climbed to a eight-month high last week on speculation the government will act to shore up growth.

 

China Mobile

 

A gauge tracking telecom companies rose 1.2 percent, heading for the highest close since February 2013, while energy companies gained 0.7 percent.

Technology shares slid 0.5 percent.

China Mobile rallied 3.2 percent to HK$96.35, the biggest contributor to gains on MSCI’s developing-nation index.

Nomura raised its share-price target to HK$115 from HK$90, while Bocom International Holdings lifted its target by 31 percent to HK$102.3.

MTN Group climbed 1.1 percent in Johannesburg.

Gazprom added 1.1 percent and OAO Lukoil gained 0.8 percent, leading Russia’s Micex Index to its seventh straight day of gains, the longest winning streak since September.

The emerging-markets gauge has risen 7.3 percent this year and trades at 11.2 times projected 12-month earnings, data compiled by Bloomberg show.

The MSCI World Index of developed nations has gained 3.5 percent and is valued at a multiple of 14.8.

 

House Prices

 

The Hang Seng China Enterprises gauge of mainland companies listed in Hong Kong declined 0.4 percent.

China Minsheng Banking lost 2.3 percent.

Agricultural Bank of China fell 1.1 percent.

Prices of new homes fell in 64 of the 70 cities last month from June, the National Bureau of Statistics said today, the most since January 2011 when the government changed the way it compiles the data.

China’s foreign direct investment fell 17 percent in July from last year, according to separate data from Ministry of Commerce.

Tencent Holdings, Asia’s largest Internet company, declined 1.2 percent in Hong Kong.

JD.com Inc., the Chinese online retailer in which Tencent bought a stake in March, said August 15 its net loss widened in the second quarter.

Hyundai Motor slid 2.6 percent, extending Friday’s 1.5 percent loss when the company’s workers in South Korea voted in favour of a plan to halt work.

More than 70 percent of workers in affiliate Kia Motors also voted to strike, Financial News reported today.

Unions at both companies vowed on July 30 to go on strike this month unless wage demands are met.

Commercial International Bank Egypt SAE slid 1.8 percent, pacing a 0.9 percent decline in the nation’s equities benchmark EGX 30 Index.

India’s S&P BSE Sensex index advanced for a fifth day, adding 0.9 percent.

Prime Minister Narendra Modi pledged in his Independence Day speech to provide bank accounts and life insurance for millions of poor people while seeking to revive manufacturing in Asia’s third largest economy. - Bloomberg News



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