Emerging-market stocks rose for the first time in seven days, led by consumer and energy companies, as slower inflation in China eased pressure for monetary tightening in the world's second-largest economy.
Great Wall Motor Co, China's biggest maker of sport utility vehicles and pickup trucks, surged the most in 10 months in Hong Kong. OAO Lukoil, Russia's biggest non-state oil company, rebounded from a four-month low. Assore Ltd, a joint owner of an iron-ore and manganese producer, gained the most in a month in Johannesburg.
The MSCI Emerging Markets Index added 0.4 per cent to 1,011.26 at 1:10 pm in London, rebounding from the lowest level since November 30. China's inflation eased in March from a 10- month high, data showed today, reducing pressure on policy makers to tighten credit as the economy recovers.
"Investors' perceptions on emerging markets have been so negative, so even with a little good news, the market can rebound easily," Soni Wibowo, a director at PT Bahana TCW Investment Management which manages about 22 trillion rupiah ($2.3 billion) in assets, said by telephone in Jakarta.
Thailand's baht strengthened, breaching 29 per dollar for the first time since 1997, as unprecedented monetary easing in Japan fueled demand for the nation's assets. Russia's ruble and South Africa's rand gained at least 0.3 per cent.
Bank of Japan officials said last week they will boost monthly bond purchases to spur economic growth, while Federal Reserve Chairman Ben S. Bernanke said yesterday economic conditions aren't what he'd like them to be.
'Huge Easing'
"Huge easing in the highly indebted developed countries" including Japan and the US is expected, pumping money into emerging markets, Jan Dehn, London-based co-head of research at Ashmore Investment Management Ltd., which manages $71 billion, said by e-mail. "As if that was not enough, we had soft inflation in China, so hiking there also looks less likely."
The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong rose 1.7 per cent, the most since March 20. Russia's Micex Index climbed 1 per cent, snapping a four-day slump, with trading volume 49 per cent above the 30-day average.
Lukoil climbed 1.3 per cent, the first gain in five days. OAO Gazprom, the world's biggest natural gas producer, advanced 0.6 per cent. Brent crude climbed 0.5 per cent in London.
OAO GMK Norilsk Nickel, Russia's largest mining company, added 1.8 per cent. Nickel and copper led gains by industrial metals.
Stake Sale
OAO Phosagro, Europe's largest phosphate-fertilizer producer, fell 5.1 per cent in Moscow. Andrey Guryev and his family are selling a 9 per cent stake, according to Phosagro's statement late yesterday.
Assore climbed 6.1 per cent, snapping a three-day decline. Kumba Iron Ore Ltd., owner of Africa's biggest mine for the metal, advanced 1 per cent in Johannesburg.
"Iron-ore stocks are having a relief day," Ryan Wibberley, a trader at Investec Asset Management, said by phone from Cape Town. "They're rallying from an oversold position."
Migros Ticaret, a Turkish supermarket chain, rose 1.3 per cent in Istanbul, poised for the highest close since January 17, after Bank of America Merrill Lynch raised the stock to buy from hold.
Gauges of consumer-discretionary companies and energy stocks in the MSCI Emerging Markets Index rose at least 0.6 per cent, the most among 10 industry groups. The broader index has lost 4.2 per cent this year, compared with a 6.8 per cent gain in the MSCI World Index of developed-country stocks. The developing-nations measure trades at 10.2 times estimated 12- month earnings, compared with the MSCI World's multiple of 13.4, according to data compiled by Bloomberg.
Yield spread
The extra yield investors demand to own emerging-market debt over U.S. Treasuries rose one basis point, or 0.01 per centage point, to 289 basis points, according to JPMorgan Chase & Co.'s EMBI Global Index.
The Shanghai Composite Index added 0.6 per cent, halting a four-day slide. Vietnam's VN Index gained 0.8 per cent to the highest level since February 2011. South Korea's Kospi index added 0.1 per cent, halting a six-day decline. Thailand's SET Index fell 1.3 per cent. China's consumer prices rose 2.1 per cent in March from a year earlier. That compares with the 2.5 per cent median estimate of 38 economists and a 3.2 per cent gain in February when spending for the Lunar New Year holiday pushed up prices.
Great Wall
Great Wall Motor jumped 6.8 per cent, its second day of gains. China Life Insurance Co jumped 4.4 per cent, its largest increase since January 2. Intime Department Store Group Co surged 7.2 per cent and Belle International Holdings Ltd. (1880) jumped 4.4 per cent after same-store sales increased in the first quarter. Golden Eagle Retail Group Ltd., which operates department stores in China, surged 6.9 per cent in Hong Kong.
Jiangxi Copper Co, China's largest supplier of the metal, advanced 2.1 per cent in Hong Kong.
India's S&P BSE Sensex fell 1.2 per cent, sliding for a fifth day amid concern company earnings will trail analyst estimates. Wipro Ltd, India's third-largest software-services provider, tumbled 12 per cent in Mumbai, the most since October 2008, after the stock traded for the first time as a standalone entity following a spinoff.
