Azernews.Az

By Bloomberg

Most emerging-market stocks rose after Hyundai Motor Co. announced a share buyback plan and investors speculated China’s exchange link will boost earnings at financial firms. Energy companies dropped with oil prices.

Hyundai Motor surged 5.7 percent in Seoul. Bank of China Ltd. jumped 10 percent in Shanghai and Industrial & Commercial Bank of China Ltd. rose to a 14-month high after the Xinhua News Agency said the two lenders were picked as settlement banks for trading shares via the stock-link program. PetroChina Co. sank to a six-month low in Hong Kong as oil fell for a second day. Samsung Electronics Co. slid from a three-month high. South Korea’s won lost 0.6 percent versus the dollar.

The MSCI Emerging Markets Index fell 0.1 percent to 996.82 at 1:50 p.m. in Hong Kong with about five shares advancing for every four that dropped. Chinese equities extended gains after yesterday’s announcement that the Shanghai-Hong Kong exchange link will start on Nov. 17. Crude is extending losses in a bear market amid signs that global supply is outpacing demand.

“Overseas investors’ interest in Chinese stocks should rise significantly as the link will provide greater access and liquidity to those shares,” Chakrit Puechpan, head of domestic equities at MFC Asset Management Pcl, said in Bangkok. “The outlook for energy stocks is very weak as oil keeps falling.”

The developing-nation gauge has dropped 0.6 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has advanced 3.2 percent and is valued at a multiple of 15.2.

Stock Buyback

Seven out of 10 industry groups in the emerging-markets index fell, led by energy and technology shares. Measures of financial and consumer-discretionary companies were the biggest gainers. Hyundai Motor had its steepest advance since Oct. 23, while affiliate Kia Motors Corp. added 2 percent. Both companies will buy back a combined 670 billion won ($616 million) of stock after their purchase of a Seoul property for three times the assessed price spurred a sell-off.

Bank of China jumped 10 percent and Industrial & Commercial Bank of China surged 5.5 percent as the Shanghai Composite Index climbed 1.3 percent to a three-year high. The Hang Seng China Enterprises Index rose 1.4 percent.

The Shanghai connect will expand access to Chinese shares from a limited number of institutions to anyone with a Hong Kong brokerage account. The exchange link will give foreign investors greater access to Chinese companies tied to the nation’s consumer market, which President Xi Jinping is counting on to reduce the dependence of the world’s second-largest economy on exports and infrastructure spending.

Oil Falls

PetroChina, the nation’s biggest explorer, fell 1.9 percent in Hong Kong, while Cnooc Ltd. lost 1.3 percent. West Texas Intermediate for December delivery declined as much as 0.7 percent in electronic trading in New York. The contract lost 1.6 percent yesterday, the lowest close since Nov. 4.

Samsung Electronics, the world’s largest maker of smartphones, retreated 2.9 percent, after surging 5.1 percent yesterday. DGB Financial Group Inc. tumbled 14 percent in Seoul, the most in the developing-nation gauge, after saying it plans to sell new shares.

The Kospi index rose 0.2 percent, its fourth day of gains. The won slid after ending a seven-day drop yesterday. Malaysia’s ringgit and Indonesia’s rupiah lost at least 0.3 percent. Indonesian equities climbed 1.3 percent on speculation President Joko Widodo will increase regional trade ties and secure enough support from parliament to push through reform measures.

Vietnam equities advanced 0.9 percent and Thai shares gained 0.5 percent. India’s S&P BSE Sensex rose 0.2 percent.