Seoul: Emerging-market stocks headed for the biggest two-day gain since March as technology companies rose and Tata Motors Ltd’s earnings drove Indian equities higher. Russian shares advanced for a third day.

Catcher Technology Co. jumped 5.4% in Taipei after its profit beat estimates. Tata Motors surged the most in nine months after profit grew threefold, sending the S&P BSE Sensex to its steepest increase since 22 July. OAO Lukoil led Russian shares to a two-week high while the ruble slid 0.4%. China’s Shanghai Composite Index slid from an eight-month high.

The MSCI Emerging Markets Index rose 0.3% to 1,064.11 at 9:45 am in London. The measure ended a four-day loss on Monday as tension eased in Ukraine. The developing- nation technology gauge, the best performer among industry groups this year, increased for a second day on Tuesday. The Shanghai Composite has rebounded 12% from this year’s low, pushing the 14-day relative strength index above 70. Readings above 70 indicate a security may be poised to fall.

In the last few months, we’ve seen a lot of earnings downgrades and there seems to be a bottoming, Daphne Roth, the Singapore-based head of Asian equity research at ABN Amro Private Banking, which oversees about $207 billion, said by phone. There is some profit-taking in China, she said.

Global equities are rebounding amid speculation a proposed Red Cross aid mission in eastern Ukraine may help to ease tensions and on optimism US bombing will help push back militants in Iraq.

Stock valuations

The developing-nation gauge has risen 6.1% this year and trades at 11 times 12-month projected earnings, data compiled by Bloomberg show. The MSCI World Index has gained 2.4% and is valued at a multiple of 15.

Catcher, a supplier of casings to Apple Inc, surged the most since 28 April. The company reported second-quarter operating profit of NT$5.16 billion ($172 million), beating the NT$3.9 billion estimate of 15 analysts in a Bloomberg survey.

Tencent Holdings Ltd., Asia’s biggest Internet company, rose 0.8% in Hong Kong before its earnings tomorrow. SK C&C Co., a South Korean computer service provider, jumped 5.4% after its operating profit increased 26% in the three months ended June. The Kospi index added 0.1% and the won strengthened 0.4% versus the dollar.

All 10 industry groups in the emerging-market index climbed today, led by healthcare and industrial companies. Samsung Heavy Industries Co. increased 2.1% in Seoul, leading South Korean shipbuilders higher.

Tata rallies

Tata Motors, India’s biggest automaker, jumped 5.4% in Mumbai after it posted profit that beat estimates. The Sensex rose 1%. India’s factory output data and consumer price inflation data is due on Tuesday.

The Micex Index climbed 0.8%, its third day of gains as Lukoil added 1%. OAO Rostelecom, Russia’s state-run telecommunications operator, rose 3.8%. The benchmark gauge rallied 0.4%, extending its gains for a third day. The ruble halted a two-day advance.

The Shanghai Composite slid for the first time in three days as Huaxia Bank Co. and Industrial Bank Co. dropped at least 1%. China may release economic data on new yuan loans and money supply as early as Tuesday. The government is scheduled to unveil July data on industrial production, fixed-asset investment and retail sales tomorrow.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong climbed 0.2%. It gained 1.3% on Monday on optimism subdued China inflation will allow room to ease policy.

Equity gauges in Indonesia and the Philippines advanced 0.4%. Turkey’s Borsa Istanbul 100 Index rose 0.9% after falling 2.4% on Monday.

The lira weakened for a second day while the South African rand lost 0.2%, declining for the first time in three days before a government bond auction. BLOOMBERG

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