Jakarta - Emerging-market stocks rose to a two-week high after manufacturing in China and Europe expanded while lower oil prices boosted shares from India to Turkey.
South Korea’s won climbed to its strongest level since May.
China Railway Construction Corp. and China Pacific Insurance Group Co. advanced at least 3.4 percent in Hong Kong.
The Borsa Istanbul National 100 Index jumped 2.3 percent and the lira gained, while India’s S&P BSE Sensex index rallied for a fourth day.
OAO Mechel, Russia’s biggest producer of coal for steelmakers, and KGHM Polska Miedz SA, Poland’s copper producer, snapped four-day slumps as industrial metals rose. Indonesian stocks fell after the country reported a record trade deficit.
The MSCI Emerging Markets Index added 0.8 percent to 936.54 as of 12:04 p.m. in London, after losing 1.9 percent last month.
China’s economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August.
The expansion in euro-area factory output was driven by a resurgence in Italy and Spain.
US President Barack Obama delayed action against Syria by seeking approval from Congress, easing concern that an imminent strike would disrupt Middle East oil exports.
“Emerging markets are having a relief bounce today as the global growth data show sequential improvement,” Michael Wang, an emerging-markets strategist at Amiya Capital LLP in London, said by e-mail.
“Also the threat of a US strike on Syria is reduced for the time being.”
The premium investors demand to own emerging-market debt over US Treasuries fell two basis points, 0.02 percentage point, to 355 basis points, according to JPMorgan Chase & Co. indexes.
The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong surged 2.3 percent, the most in almost three weeks.
An official Purchasing Managers’ Index climbed to 51 in August from 50.3 in July, a government report showed yesterday.
A separate PMI released today by HSBC Holdings Plc and Markit Economics advanced to 50.1 last month from 47.7 in July, the largest gain since 2010. Readings above 50 signal expansion.
A euro-area index based on a survey of purchasing managers in the manufacturing industry increased to a 26-month high of 51.4 from 50.3 in July, London-based Markit Economics said today.
That’s above an initial estimate of 51.3 published on August 22.
Mechel added 1.2 in Moscow and KGHM surged 3.9 percent in Warsaw.
Anglo American Plc, a diversified mining company, added 3.6 percent, leading gains in Johannesburg.
Copper rose the most in three weeks.
China is the world’s biggest consumer of the metal.
Turkey’s benchmark equity gauge climbed the most since August 12, while the lira gained 1 percent against the dollar, after crude retreated for a third day.
Turkey imports about 95 percent of its oil needs.
The main indexes in South Africa, Hungary, Poland and the Czech republic added 0.5 percent, while Russia’s Micex rose 0.4 percent.
Nine out of 10 industry groups in MSCI’s emerging-markets index advanced, led by financial and energy companies.
The broad measure has lost 11 percent this year, compared with an 11 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 13 times, data compiled by Bloomberg show.
China Railway Construction climbed the most since July 23 after reporting a 47 percent jump in first-half profit.
China Pacific Insurance had its biggest gain since August 13.
Machinery companies in Shanghai rallied after the Chinese economic data. Zoomlion Heavy Industry Science and Technology Co. and Sany Heavy Industry Co. surged more than 5 percent.
Kweichow Moutai Co., China’s biggest liquor maker by market value, plunged 10 percent in Shanghai after the company’s profit trailed estimates.
Everbright Securities Co. slumped 8.5 percent after it drew a record penalty and two executives resigned.
The Sensex increased 1.4 percent as lower oil prices offset India’s slowest economic expansion in four years.
The country imports 80 percent of its oil requirements. ICICI Bank Ltd., the country’s second-biggest lender, rose 2.8 percent in Mumbai, while Hindustan Unilever Ltd., the nation’s largest household products maker, added 1.6 percent.
The won advanced to the strongest level since May after South Korea reported a trade surplus that was double what economists predicted.
The Jakarta Composite Index fell 2.2 percent, the biggest decliner in Asia, and the rupiah weakened 0.5 percent.
The trade gap in July was $2.3 billion, the biggest on record, according to the Statistics Bureau, and exceeding all 16 estimates in a Bloomberg survey.
PT Indofood Sukses Makmur tumbled 9.2 percent in Jakarta, the most since September 2011.
The company, the largest shareholder of China Minzhong Food Corp., offered S$488 million ($383 million) cash for the rest of the vegetable processor that had slumped after a short-seller’s allegations.
Minzhong shares more than doubled after resuming trade in Singapore today.
HTC Corp. dropped 5.8 percent in Taipei as some employees were detained by Taiwan authorities after the smartphone maker alleged that some of its trade secrets were breached.
Thailand’s SET Index added 2.3 percent and Taiwan’s Taiex Index rose 0.2 percent, while South Korea’s Kospi index lost less than 0.1 percent. - Bloomberg News