Emerging stocks rose a third day, led by technology companies, as a drop in United States jobless claims sparked optimism about the global economy.
Bloomberg reports that Brazil’s Bovespa index tumbled the most among the world’s major equity gauges.
Taiwan Semiconductor Manufacturing Company, the largest contract producer of chips, jumped the most in more than four months in Taipei.
Turkish stocks climbed and bond yields fell as Moody’s Investors Service said a peace agreement with Kurdish militants would enhance the country’s creditworthiness.
Brazil’s Bovespa slumped by 1.8 per cent, snapping a four-day rally, after a disappointing retail sales report. Phone carrier Oi SA tumbled to the lowest price since 1999 in Sao Paulo.
The MSCI Emerging Markets Index rose by 0.4 per cent to 1,028.99 in New York, adding 2.2 per cent in three days.
Stocks gained as data showed applications for unemployment benefits in the US fell more than forecast last week, easing concern the labor market was taking a turn for the worse.
The jobless claims number “is giving people a lot of comfort that the US economy won’t experience a second quarter slowdown,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management which oversees $170bn, said by phone.
“The news flow has been more positive. You’re seeing risk-taking happening across the globe.”
A measure of technology shares in the MSCI Emerging Markets Index added 1.8 per cent on Thursday. The emerging-markets gauge slipped by 2.5 per cent this year, trailing an 9.2 per cent increase in the MSCI World Index of developed-country stocks.
The emerging-markets measure trades at 10.7 times 12-month projected profit, compared with the MSCI World’s multiple of 14.1, according to data compiled by Bloomberg.