BackEmerging stocks gain to three-year high as Apple suppliers rise
The developing-market gauge has advanced 8.8% this year and trades at 11.4 times 12-month projected earnings
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Jakarta: Emerging-market stocks headed for a three-year high as Apple Inc. suppliers rallied on a report they are preparing to manufacture the company’s biggest-ever iPad. Poland’s zloty and South Africa’s rand strengthened.
TPK Holding Co., a maker of touch screens for Apple, climbed 5.4% in Taipei, while Catcher Technology Co. gained to a record. China Oilfield Services Ltd jumped 8% in Hong Kong after posting profit that beat estimates. OAO Sberbank led Russian stocks higher, while Arabtec Holding Co. jumped to its highest level in six weeks.
The MSCI Emerging Markets Index advanced 0.3% to 1,091.32 at 9:47am in London, its fourth day of gains. Stocks joined a global rally after US data showed the biggest-ever jump in durable-goods orders while consumer confidence unexpectedly climbed in August, adding to signs the recovery in the world’s biggest economy is gathering pace. Russia’s president said talks over Ukraine were positive.
Emerging stocks are gaining as strong US data and easing geopolitical tension helped investors sentiment, Christopher Wong, a senior investment manager in Singapore at Aberdeen Asset Management Plc.
Global equities reached a record $66 trillion in value on Tuesday as the Standard & Poor’s 500 Index rose above 2,000. Shares worldwide added more than $2.2 trillion in value since 7 August, according to data compiled by Bloomberg.
Stock valuations
The developing-market gauge has advanced 8.8% this year and trades at 11.4 times 12-month projected earnings, the most expensive since January 2011, data compiled by Bloomberg show. The MSCI World Index has climbed 5.3% and is valued at a multiple of 15.1.
All but one of the 10 industry groups in the emerging- markets index rose, led by technology and telecom shares. TPK Holding surged to a one-month high, while casing maker Catcher Technology added 2.3% in Taipei. Taiwan’s Taiex Index advanced 1%.
The new iPad will have a screen measuring 12.9 inches diagonally, according to people with knowledge of the matter. Production is scheduled to commence by the first quarter of next year.
Russia’s Micex index gained 0.7%. Sberbank advanced 1% and fertilizer company OAO Phosargo jumped 2.7%. Dubai’s GFM General Index added 0.7%, extending its advance to an eighth day, the longest winning streak since 20 January. Arabtec climbed 2.6%.
BYD Co., the electric-car maker partially owned by Warren Buffett’s Berkshire Hathaway Inc., gained 5.9% in Hong Kong. The Chinese government is considering investing as much as 100 billion yuan ($16 billion) to build charging facilities for electric vehicles and spur demand for clean cars.
Korean brokerages
The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong retreated 0.45%, reversing earlier gains of as much as 0.9%.
Woori Investment & Securities Co. led Korean brokerages higher after finance minister Choi Kyung Hwan said the government plans to ease rules on private pension fund management.
The Jakarta Composite Index rose 0.3%, snapping a three-day decline. PT Ashmore Asset Management Indonesia predicts the gauge could rise by another 17% by the end of next year.
The zloty gained 0.2% against the dollar as Polish Prime Minister Donald Tusk said the government will increase social spending. The rand strengthened 0.3%, while Malaysia’s ringgit advanced 0.4%. Bloomberg
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