Azernews.Az

By Bloomberg

Emerging-market stocks rose, with the benchmark index heading for the biggest weekly advance in five weeks, as Chinese equities gained on speculation the government is taking more measures to bolster the economy.

China Life Insurance Co. and Haitong Securities Co. advanced at least 4.9 percent in Shanghai, where the benchmark index climbed 2 percent, extending yesterday’s 3.4 percent jump. Doosan Heavy Industries & Construction Co. added for the third day in Seoul after receiving an order worth 1.8 trillion won ($1.6 billion) for a coal-fired power plant in Vietnam. Hyundai Glovis Co. advanced the most in a week as Woori Investment & Securities Co. said improving profits would enable the company to boost dividend payments.

The MSCI Emerging Markets Index rose 0.2 percent to 952.90 at 1:03 p.m in Hong Kong, extending the week’s gains to 0.9 percent, the most since the five days ended Nov. 21. The People’s Bank of China plans to temporarily waive a requirement for lenders to set aside reserves for some deposits, people with knowledge of the matter said, highlighting efforts to boost lending amid a slowdown in the world’s second-largest economy.

“This piece of Chinese news has a broader impact on Asia stocks, especially since most investors are away and volume is small,” said Sam Hsieh, a Taipei-based fund manager at Fuh Hwa Securities Investment Trust Co., who helps oversee the equivalent of $7 billion. “The PBOC’s plan to waive a requirement for lenders will have a similar impact to cutting the reserve-ratio requirement.”

Currencies Gain

The developing-nation gauge has dropped 5 percent this year and trades at 11.1 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has increased 4 percent and is valued at a multiple of 15.7.

Eight out of 10 industry groups in the emerging-markets measure rose, led by energy and technology companies. China Life Insurance climbed 5.4 percent, on course for the highest close since January 2010, while Haitong Securities added 4.9 percent.

Doosan Heavy gained 1.4 percent, while Hyundai Glovis rose 2 percent, heading for its biggest advance since Dec. 19. The benchmark Kospi Index advanced 0.4 percent.

Taiwan shares climbed 0.3 percent, while Malaysia’s benchmark index increased 0.6 percent. Markets in Indonesia, the Philippines and Hong Kong are closed today for holidays.

South Korea’s won, Malaysia’s ringgit and the Indonesian rupiah strengthened at least 0.2 percent against the dollar. The Thai baht weakened 0.3 percent.