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By Bloomberg

Emerging-market stocks rose after Chinese equities rebounded from the biggest loss since 2008 as data showed the nation’s economy expanded faster than estimated. Malaysia’s ringgit led developing-nation currencies lower.

The Shanghai Composite Index climbed 1.8 percent after plunging 7.7 percent yesterday. Haitong Securities Co. and Citic Securities Co. gained at least 5.9 percent in Hong Kong. India’s S&P BSE Sensex rose to a seven-week high. The ringgit sank to a 2009 low versus the dollar after the government said the budget deficit will be wider than initially targeted. Russia’s ruble weakened for the first time in three days.

The MSCI Emerging Markets Index advanced 0.3 percent to 955.46 at 8:19 a.m. in London, its first gain in three days. China’s gross domestic product grew 7.3 percent in the three months through December from a year earlier, compared with the median estimate of 7.2 percent in a Bloomberg News survey. The European Central Bank sets monetary policy this week as speculation grew that it will expand asset purchases.

“China’s economy has reached the bottom and is on the way for a slow recovery,” Komsorn Prakobphol, an investment strategist at Tisco Financial Group Pcl, said by phone from Bangkok. “The overall global economic outlook remains weak, especially in Europe, which will increase market volatility.”

The International Monetary Fund made the steepest cut to its global-growth outlook in three years, with diminished expectations almost everywhere except the U.S. more than offsetting the boost to expansion from lower oil prices.

Stock Valuation

The developing-nation gauge has lost 0.1 percent this year and trades at 10.6 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has fallen 1.7 percent in 2015 and is valued at a multiple of 15.5.

Eight out of 10 industry groups in the emerging-markets index rose, led by the financial stocks. Haitong Securities and Citic Securities rebounded after record declines yesterday. Hong Kong’s Hang Seng China Enterprises Index climbed 2.3 percent. The gauge slumped the most since November 2011 yesterday.

The Shanghai Composite index rebounded as PetroChina Co. surged 3.4 percent. Chinese equities slumped yesterday after regulatory efforts to rein in record margin lending sparked concern speculative traders will pull back from the world’s best-performing stock market.

India’s Sensex advanced 1.1 percent, its fourth day of increases, after the IMF said the nation will be world’s fastest-growing major economy in the year through March 2017.

The ruble lost 0.2 percent, while the Micex Index climbed 0.2 percent, paced by a 9.6 percent jump in OAO Inter RAO UES.

South Korea’s won declined 0.9 percent, while the Turkish lira and South Africa’s rand retreated at least 0.1 percent.

The ringgit slid 1 percent after Malaysia said the budget deficit will be 3.2 percent of gross domestic product compared with an October target of 3 percent. The government also cut its economic growth forecast for this year.

Equity gauges in Taiwan, South Korea and India rose at least 0.8 percent.