Azernews.Az

By Bloomberg

Emerging-market stocks headed for the longest winning streak in almost five years as shares in Shanghai extended their world-beating gain to a seven-year high. Russia’s ruble was poised for a record weekly advance.

The Shanghai Composite Index closed above the 4,000 level for the first time since 2008 after Chinese data Friday showed the risk of broad-based deflation is easing. Amorepacific Corp. led South Korean equities to a 2011 high after Moody’s Investors Service raised the nation’s rating outlook. OAO Gazprom, the world’s biggest natural-gas producer, rallied for an 11th day in Moscow. The ruble strengthened 1.6 percent versus the dollar. Malaysia’s ringgit weakened 1 percent.

The MSCI Emerging Markets Index added 0.5 percent to 1,033.76 at 9:02 a.m. in London, set for its 10th day of increases, the longest stretch of gains since June 2010. The gauge has surged 4 percent this week. New investors flocked to Chinese equities at a record pace and traders took out unprecedented debt to amplify their buying power.

“There is more room for Chinese stocks to gain further, though there will be some temporary correction,” Win Udomrachtavanich, the Bangkok-based chief executive officer at One Asset Management Ltd., which oversees about $3.5 billion, said by phone. “The government’s current and future economic policies are still accommodating for further growth in the Chinese economy.”

Stock Valuations

The developing-nation gauge has risen 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 gained 3.6 percent in 2015 and is valued at a multiple of 16.8.

The Shanghai Composite climbed 1.9 percent, capping a 4.4 percent surge this week. Data showed March prices for consumer products rose at the same pace as in February, while declines in costs at the factory gate stabilized.

The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong climbed 1.7 percent, taking gains this week to 10.5 percent, as mainland buying spilled over into Hong Kong through the city’s exchange link with Shanghai.

Seven out of 10 industry groups rose, led by energy and consumer-discretionary shares. Gazprom added 2 percent, poised for the longest rally on record. The Micex traded little changed. The ruble was set for a 9.7 percent weekly increase.

Oil Gains

Oil headed for the longest stretch of weekly gains since February 2014 as Iran disputed the framework for a nuclear deal with world powers that would allow the OPEC member to boost crude exports.

Amorepacific, South Korea’s largest cosmetics maker, jumped 7.8 percent to a record, and carmaker Hyundai Motor Co. advanced 3.7 percent. The Kospi added 1.4 percent. South Korea’s credit outlook was revised to positive from stable by Moody’s, which cited improved public debt management.

The Philippine Stock Exchange Index rose 0.9 percent to an all-time high. Vietnam’s VN Index climbed 0.6 percent. Taiwan’s Taiex Index added 0.5 percent as Taiwan Semiconductor Manufacturing Co. increased 2.8 percent. Equity gauges in India and Malaysia slid 0.3 percent. The ringgit headed for the largest drop since Jan. 20. Indonesia’s rupiah lost 0.3 percent.