Azernews.Az

By Bloomberg

Most emerging-market stocks climbed as raw- material producers advanced and investors speculated that China will do more to support economic growth. Russian shares fell from a five-month high.

The MSCI Emerging Markets Index fell 0.1 percent to 1,004.62 at 1:39 p.m. in London, with 354 stocks rising and 177 falling. Russia’s RTS Index lost 0.2 percent after closing on Monday at its highest level since November. Turkish equities halted a four-day increase. Posco, South Korea’s biggest steelmaker, surged 4.2 percent. The Shanghai Composite Index rallied to a seven-year high.

The Shanghai gauge has soared 92 percent over the past 12 months on speculation the central bank will continue to lower borrowing costs. Federal Reserve Bank of Atlanta President Dennis Lockhart said on Monday while recent U.S. economic weakness probably won’t persist, he favors pushing out the central bank’s first rate increase beyond the next two meetings.

“Local sentiment in China remains very strong, mainly on easing expectations,” Maarten-Jan Bakkum, a senior emerging- markets strategist at NN Investment Partners in The Hague, said by e-mail. Some markets are retreating following strong gains driven by bets the Fed will delay raising interest rates, he said.

A gauge of developing-nation currencies fell, ending a four-day gain. The Turkish lira led losses with a 0.8 percent decline, while the South African rand and the Brazilian real both slid 0.4 percent.

Stock Valuations

The MSCI emerging-market index has gained 5.1 percent this year and trades at 12.2 times projected 12-month earnings, the most since April 2010, data compiled by Bloomberg show. The MSCI World Index has advanced 3.3 percent in 2015 and is valued at a multiple of 16.8.

Equities gauges in Hungary and Poland climbed 2.1 percent and 1 percent, respectively. Dubai’s benchmark stock index rose 1.8 percent in an eighth day of gains, while the Saudi Tadawul All Share Index added 2.1 percent.

Three out of 10 industry groups in the developing-nation index climbed. Posco surged the most since Nov. 24. The steelmaker may post its best first-quarter operating profit since 2011, Korea Investment Holdings Co. said in a report yesterday.

OAO Lukoil fell 1.6 percent in Moscow as the Micex lost 0.4 percent, its first drop in seven days. Oil declined 1.2 percent in London after jumping 5.8 percent on Monday.

India Rates

The Shanghai Composite surged 2.5 percent as large-company shares jumped. Mainland and Hong Kong markets were closed on Monday, with the latter set to resume trading on Wednesday. CSR Corp. and China CNR Corp. both soared 10 percent after the two train makers said their merger was cleared by regulators.

India’s Sensex closed little changed at the highest level since March 18. Governor Raghuram Rajan kept the benchmark repurchase rate at 7.50 percent, the Reserve Bank of India said in a statement in Mumbai on Tuesday, a move predicted by 33 of 42 economists in a Bloomberg survey. The rest saw a cut to 7.25 percent.

The premium investors demand to own emerging-market debt over U.S. Treasuries fell one basis point to 356, according to JPMorgan Chase & Co. indexes.