Emerging-Market Stocks Cap Longest Rally in Decade on China Bets
Bloomberg - Apr 13, 2015
Emerging-market stocks rose for an 11th day, their longest streak of gains in 10 years, as a surprise slump in Chinese exports fueled speculation that the government will boost stimulus in the world’s second-largest economy.
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 a seven-year high. China Merchants Bank Co. soared 25 percent after announcing an employee stock-incentive plan. Russia’s ruble gained 2.8 percent as oil gained for a third day. Most other emerging-market currencies declined. Turkey’s lira fell to a record.
The MSCI Emerging Markets Index added 0.6 percent to 1,040.67. The yuan weakened the most in a month after China’s exports shrank 14.6 percent in March, fueling speculation that policy makers will favor a weaker currency and pursue measures to shore up economic growth.
“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.
A gauge tracking 20 emerging-market currencies declined 0.4 percent to the lowest level in more than a week. Brazil’s real slid 1.6 percent. The lira lost as much as 1.7 percent to 2.673 per dollar. Turkey’s currency has come under pressure amid political uncertainty before general elections, according to Erkin Isik, a fixed-income strategist at Turk Ekonomi Bankasi AS in Istanbul.
