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Emerging stocks rise on Greece pledge

Emerging stocks rise on Greece pledge
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First Published: Thu, Feb 11 2010. 10 53 PM IST
Updated: Thu, Feb 11 2010. 10 53 PM IST
London: Emerging market stocks rose for a third day as commodities climbed, Chinese inflation unexpectedly slowed and European leaders reached an agreement to deal with Greece’s debt crisis.
The MSCI Emerging Markets Index advanced 1.1% to 922.44 at 8:27 am in New York. The 22-country gauge’s 3.2% rally over three days is the largest since 6 January. Developing-nation currencies strengthened against the dollar, led by a 0.9% advance in South Africa’s rand and a 0.6% rise in Brazil’s real.
Energy and raw-materials stocks climbed as Australian employers added the most workers in more than three years in January, bolstering speculation economies will grow even as governments reduce stimulus.
The Shanghai Composite Index advanced for a third day after a lower-than-estimated increase in consumer prices eased concern China’s central bank will curb economic growth by lifting interest rates.
“The economic fundamentals are continuing to get better,” Geoff Lewis, head of investment services at JPMorgan Asset Management in Hong Kong, said in an interview on Bloomberg Television. “We just need to sit tight and money will start to flow back into these markets.”
Euro-region leaders ordered Greece to get the bloc’s highest budget deficit under control and said they are prepared to take determined action to staunch the worst crisis in the currency’s 11-year history.
“Euro area member states will take determined and coordinated action if needed to safeguard financial stability in the euro area as a whole,” European Union president Herman Van Rompuy told reporters.
The extra yield investors demand to own emerging-market debt over US treasuries declined five basis points to 2.99 percentage points, according to JPMorgan Chase and Co.’s EMBI+ Index.
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First Published: Thu, Feb 11 2010. 10 53 PM IST