Emerging-market stocks rose from the lowest level in four weeks and currencies strengthened after exports rebounded in Germany and China, adding to signs that the global economy is recovering.
Bloomberg News reported that Cosco Pacific Limited, the container-terminal arm of China’s biggest shipping group, added 2.3 per cent in Hong Kong. GedeonRichter Nyrt., Hungary’s biggest drugmaker, headed for its biggest two-day advance in 18 months. KGHM PolskaMiedz SA, Poland’s sole copper producer, jumped the most since September as copper climbed to an eight-week high. South Africa’s rand gained for the first time in four days.
The MSCI Emerging Markets Index advanced 0.5 per cent to 942.97 as of 2:08 p.m. in London, the first increase in three days. German exports jumped 0.6 per cent from May and Chinese shipments overseas climbed 5.1 per cent in July, reports showed today. Stocks fell earlier this week as Federal Reserve officials signaled scaling back stimulus may be warranted should the labor market continue to strengthen and the economy improve.
“We are finally starting to see more positive global news,” Simon Quijano-Evans, head of emerging-market research at Commerzbank AG in London, said by e-mail. “That together with the lack of Fed news in August is helping.”
The premium investors demand to own emerging-market debt over U.S. Treasuries fell one basis point, or 0.01 percentage point to 330 basis points, according to JPMorgan Chase & Company.
Benchmark equity gauges in Hungary, Poland and the Czech Republic climbed at least 1.4 per cent. Trading volumes for shares of companies on the WIG20 were 38 per cent more than the 30-day average, according to data compiled by Bloomberg. Brazil’s Ibovespa added oneper cent.
Richter advanced 2.8 per cent, extending a two-day rally to 4.8 per cent, the most since February 2012. MolNyrt., Hungary’s biggest oil company, jumped 3.4 per cent.
KGHM advanced fiveper cent in Warsaw as copper rose as much as 2.9 per cent. Anglo American Plc, a mining company operating from Australia to Brazil, gained 2.1 per cent in Johannesburg.