Azernews.Az

By Bloomberg

Emerging-market stocks headed for the longest winning streak in 10 years as a surprise slump in Chinese exports spurred bets that the government will increase stimulus to support growth. Russia’s ruble strengthened.

Industrial & Commercial Bank of China Ltd. led a 2.2 percent gain in the Shanghai Composite Index. The Hang Seng China Enterprises Index rallied to the highest level since May 2008. China Merchants Bank Co. soared 25 percent in Hong Kong after announcing an employee stock incentive plan. Russian equities added 0.8 percent and the ruble rose 2.5 percent against the dollar. Malaysia’s ringgit lost 1.1 percent.

The MSCI Emerging Markets Index advanced 0.7 percent to 1,042.10 at 9:16 a.m. in London, poised for an 11th day of gains, the longest stretch of increases since January 2005. Data Monday showed China’s overseas shipments unexpectedly slumped 14.6 percent in March from a year earlier in yuan value, compared with the median estimate for an 8.2 percent rise in a Bloomberg News survey.

“The falling exports data has raised concerns among investors about China’s outlook but it also fueled bets that the government may provide additional stimulus to support growth,” Akbar Syarief, a fund manager at PT MNC Asset Management, said by phone from Jakarta.

The developing-nation gauge has risen 9 percent this year and trades at 12.5 times 12-month projected earnings, the most expensive since 2010, data compiled by Bloomberg show. The MSCI World Index has gained 3.9 percent in 2015 and is valued at a multiple of 17.

China Rally

Seven out of 10 industry groups in the developing-nation measure climbed, led by financial and industrial stocks. ICBC added 4.3 percent as the Shanghai Composite rose to the highest level since March 2008. A gauge of foreign-currency traded shares in Shanghai had its biggest two-day gain in nine years.

Hong Kong’s Hang Seng China Enterprise gauge jumped 4.3 percent. China Merchants Bank had a record gain. The company said it will raise as much as 6 billion yuan ($967 million) in a private placement to no more than 8,500 employees.

Hyundai Development Co-Engineering & Construction surged 7.9 percent and Hotel Shilla Co. increased 15 percent after they agreed to a joint venture to build South Korea’s biggest duty- free store in Seoul. The Kospi index climbed 0.5 percent to the highest close since August 2011.

The ruble strengthened for an eighth day in nine. The Micex Index climbed 0.8 percent. Oil held gains after a fourth weekly increase. Vietnam’s VN Index rose 1 percent. The Jakarta Composite Index and the Philippine Stock Exchange Index each lost 0.7 percent.

Gulf International Services QSC sank 9.9 percent, the biggest drag on Qatar’s QE Index, which slid 1.3 percent. The ringgit weakened for a third day, while the won declined 0.5 percent and South Africa’s rand retreated 0.9 percent.