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By Bloomberg

Emerging-market stocks headed for the longest winning streak in a year as technology companies gained and Hong Kong-traded Chinese shares surged to a four-year high.

Tencent Holdings Ltd. jumped 7.1 percent in Hong Kong to lead a gauge of developing-nation technology shares to a record. The Hang Seng China Enterprises Index climbed 3.4 percent as PetroChina Co. advanced to the highest level in five months. The Shanghai Composite Index retreated from a 2008 high. South Korea’s won weakened 0.2 percent versus the dollar.

The MSCI Emerging Markets Index added 1 percent to 1,031.68 at 12:15 p.m. in Hong Kong, its ninth day of gains, poised for the highest close since Sept. 24. Hong Kong-traded mainland equities are surging on speculation that the market would catch up with its world-beating Chinese counterpart.

“Trading has become very volatile in China, but sentiments are still very strong,” Ang Kok Heng, chief investment officer of Phillip Capital Management Sdn., which manages $428 million, said by phone in Kuala Lumpur. “When the bulls come, nobody can stop them. There will be profit taking from time to time.”

The developing-nation index has gained 7.9 percent this year and trades at 12.4 times projected 12-month earnings, the most expensive since April 2010, data compiled by Bloomberg show. The MSCI World Index has risen 3.3 percent in 2015 and is valued at a multiple of 16.8.

Tencent Rallies

All 10 industry groups in the developing-nation gauge advanced, led by technology and energy companies. Tencent, Asia’s second-largest Internet company, advanced for a seventh day to a record.

The H-shares gauge, which surged 5.8 percent Wednesday, rose as much as 7.3 percent before paring gains. PetroChina rallied 4.8 percent. Gome Electrical Appliances Holding Ltd. soared 18 percent to a three-year high, the biggest advance in the MSCI Emerging Markets Index.

Mainland investors used up more than half their quota to buy Hong Kong stocks through the city’s Shanghai exchange link. Hong Kong shares are rallying after valuation discounts in the city reached the most extreme levels since 2011 and mainland authorities made it easier for domestic funds to use the cross- border bourse link.

The Shanghai Composite retreated 1.2 percent after surging 6.6 percent in the previous five days. The gauge has soared 88 percent in the past 12 months.

The S&P BSE Sensex index erased an earlier increase, falling 0.1 percent to halt an eight-day advance. Moody’s Investors Service upgraded India’s rating outlook to positive, citing improving economic prospects.

Vietnam shares rose 0.5 percent, while equity gauges in Malaysia and South Korea lost at least 0.1 percent. The won weakened for a third day. South Korea’s central bank held its key interest rate at an all-time low to monitor the impact of three cuts since August as inflation slowed and exports fell.