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Emerging stocks rise to four-month high after U.S. jobs data

6 April 2015 13:27 (UTC+04:00)
Emerging stocks rise to four-month high after U.S. jobs data

By Bloomberg

Emerging-market stocks headed for a four- month high as Samsung Electronics Co. paced gains for technology shares and weak U.S. jobs data spurred bets that the Federal Reserve will keep interest rates low. Malaysia’s ringgit led currencies higher.

Samsung rose 2.5 percent in Seoul as a technology gauge headed for a record close. Philippine Long Distance Telephone Co. led the nation’s stock index to an all-time high. Russian equities climbed 0.5 percent. The ruble advanced for a fourth day versus the dollar as Brent crude jumped 3 percent. The ringgit surged 1 percent. South Korea’s won added 0.7 percent.

The MSCI Emerging Markets Index climbed 0.8 percent to 1,002.47 at 9:13 a.m. in London, its sixth day of increases. Data on Friday showed U.S. payrolls in March increased the least since December 2013 and trailed the most pessimistic forecast in a Bloomberg survey. The smaller reading may bolster the case for Fed policy makers to hold off from raising interest rates. Markets in China, Hong Kong, Taiwan and Thailand are closed.

“Weakness in the U.S. data is great for this region,” Mixo Das, a Singapore-based equity strategist at Nomura Holdings Inc., said by e-mail. It “encourages outflows from developed markets and makes emerging economies” relatively more attractive, he said.

The developing-nation gauge has risen 4.8 percent this year and trades at 12.1 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has advanced 2.7 percent in 2015 and is valued at a multiple of 16.7.


Industry Groups


All 10 industry groups in the emerging-markets measure increased, paced by health-care and technology shares. Sun Pharmaceutical Industries Ltd. surged 6.4 percent to a record in Mumbai, sending Indian shares toward a two-week high.

Samsung climbed the most since March 11. The company’s first- quarter operating profit likely rose more than 5 percent from the fourth quarter, Korea Economic Daily reported. The company is due to report earnings on Tuesday.

Hyundai Engineering & Construction Co. jumped 8.1 percent, the biggest advance in the MSCI Emerging Markets Index. The Philippine Stock Exchange Index rallied 0.8 percent, its seventh day of gains, as Philippine Long Distance advanced the most in two months.

The Micex climbed for a sixth day and the ruble strengthened 0.2 percent. Oil rose as Saudi Arabia raised prices for shipments to Asia. Dubai’s DFM General Index added 1 percent. The ringgit was poised for the highest level since March 3. Malaysia is Asia’s only major oil exporter.

The FTSE Bursa Malaysia KLCI Index added 0.5 percent. The Jakarta Composite Index halted a two-day drop. The won and rupiah gained for a fourth day.

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