Azernews.Az

By Bloomberg

Emerging-market stocks rose for a third day as energy shares gained and investors bet China will take more steps to bolster economic growth. Russia’s ruble strengthened to a seven-week high.

Cnooc Ltd. and PetroChina Co. advanced at least 2 percent in Hong Kong. The Shanghai Composite Index jumped to a four-week high. The ruble added 1.1 percent versus the dollar, while the Thai baht and Malaysia’s ringgit appreciated 0.6 percent. Taiwan Semiconductor Manufacturing Co. retreated from a record high and Philippine shares halted a nine-day rally.

The MSCI Emerging Markets Index increased 0.2 percent to 994.81 at 8:10 a.m. in London, taking gains this month to 3.5 percent and driving valuations to the most expensive level since November 2010. Chinese Premier Li Keqiang called for more active fiscal policy and a central bank publication said more monetary easing is needed, signaling more support is on the way for the world’s second-biggest economy.

“China is likely to further ease monetary policy,” Thomas Yong, chief executive officer of Fortress Capital Asset Management Sdn., which oversees 1 billion ringgit ($311 million), said by phone from Kuala Lumpur. Developing-nation stocks are “expensive compared to the more established markets; there is risk that there could be further earnings downgrades.”

The developing-nation index has gained 4 percent this year and trades at 12 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has risen 4 percent in 2015 and is valued at a multiple of 16.8.

Energy Shares

Six out of 10 industry groups rose, led by energy and industrial companies. Cnooc advanced for the first time in four days and PetroChina gained for a second day. The Hang Seng China Enterprises Index added 1.4 percent.

The Shanghai Composite Index climbed 2.2 percent as Power Construction Corp. of China jumped 9.9 percent and China Railway Construction Corp. led a rally for rail-related stocks.

The ruble strengthened for a second day. Russia’s Micex Index slid 0.3 percent, its fifth day of losses, poised for the longest losing streak since a six-day drop through July 21.

Hyundai Heavy Industries Co. jumped 6.1 percent to lead South Korea’s Kospi index to its seventh day of gains. That’s the longest winning streak since October 2011.

Taiwan Semiconductor, the world’s largest contract manufacturer of chips, fell for the first time in seven days. The Taiex retreated 0.8 percent, halting a five-day gain.

Philippine shares sank 1 percent after closing at a record high on Wednesday. Nine Dragons Paper Holdings Ltd. plunged 11 percent in Hong Kong, the biggest decline in the MSCI Emerging Markets Index, after first-half profit dropped 30 percent.

Indian shares slid 1 percent before the expiry of derivative contracts and the railway budget later today. The baht and the ringgit strengthened for a second day.