Azernews.Az

By Bloomberg

Emerging-market stocks climbed for a third day, with the benchmark gauge poised to erase a weekly drop, as Samsung Electronics Co. led a rally for technology companies. Russia’s ruble gained.

Samsung surged 4.9 percent in Seoul after the Maeil Business Newspaper said it will pay higher dividends. Petroleo Brasileiro SA led a 1.2 percent jump in Brazilian stocks. The ruble strengthened 3 percent versus the dollar as Brent crude climbed 1.4 percent in London. Equity indexes in Bulgaria, Hungary and Romania jumped, tracking European stocks.

The MSCI Emerging Markets Index added 0.9 percent to 943.07 at 12:30 p.m in London, set for its steepest three-day advance in 13 months. The gauge has risen 0.5 percent this week to extend a surge in global equities after the Federal Reserve pledged to be patient on raising U.S. interest rates. Russian President Vladimir Putin said the nation can withstand an economic downturn while plunging oil prices undermine the ruble.

“Brent has stabilized around the $60/barrel level and together with Feds comment, the markets have changed the direction completely,” Mika Kannisto, a money manager at FIM Asset Management Ltd in Helsinki, said by e-mail. “EM currencies have started to strengthen.”

The ruble appreciated for a second time in three days, while the Micex Index sank 3.3 percent after surging 4.5 percent yesterday. Analysts at JPMorgan Chase & Co. raised Russian stocks to neutral versus underweight, saying that the oil price and ruble decline are priced in.

Currencies Climb

A gauge tracking 20 developing-nation currencies advanced for a third day, adding 0.3 percent to reach the highest level in five days. The Indonesian rupiah and Brazilian real climbed 0.5 percent against the dollar, while Poland’s zloty and Hungary’s forint retreated 0.4 percent versus the euro.

Romania’s BET index jumped 2.2 percent to the highest level in more than a week as developed European stocks extended gains amid a global rally. Bulgaria’s Sofix index increased 0.8 percent and Hungary’s BUX index climbed 0.6 percent. Nigeria’s stock exchange added 3.2 percent.

MSCI’s developing-nation gauge has dropped 6 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index is up 3 percent and is valued at a multiple of 15.5.

Nine out of 10 industry groups in the emerging-markets measure rose as a gauge of technology companies jumped 2.8 percent, the most since July 2013.

Samsung Dividend

Samsung Electronics, the world’s biggest mobile-phone maker, surged the most since Nov. 27. The company said after the market close it’s considering raising its 2014 full-year dividend by 30 percent to 50 percent. South Korea’s Kospi index climbed 1.7 percent, ending a four-day loss.

BYD Co. Ltd, partly owned by Warren Buffett’s Berkshire Hathaway Inc., soared 14 percent in Hong Kong after saying the shareholder had no plan to cut its stake. Hong Kong’s Hang Seng China Enterprises Index added 0.6 percent.

The premium investors demand to hold emerging-market debt over U.S. Treasuries narrowed 3 basis points to 357 basis points, according to JPMorgan Chase & Co. indexes.