Emerging stocks rise on Greece deal as Chinese equities rally
The Shanghai Composite Index rallied 2.4% as more companies resumed trading
Jakarta: Emerging-market stocks rose as Greece reached an agreement with its creditors and China’s export data topped estimates. Currencies of eastern European nations strengthened.
The Shanghai Composite Index rallied 2.4% as more companies resumed trading. Equity gauges in Taiwan, South Korea, the Philippines and Vietnam advanced at least 1.1%. Poland’s zloty and Hungary’s forint climbed at least 0.3% versus the euro. Turkey’s lira gained 0.5% against the dollar.
The MSCI Emerging Markets Index added 0.9% to 941.61 at 3:03 pm in Hong Kong, poised for the biggest three-day gain since 22 December. Greece reached an agreement with its creditors over the reforms needed to start formal negotiations over a third bailout program, European Union President Donald Tusk said on Twitter. China’s exports rose for the first time in four months in June, spurring optimism that economic growth is stabilizing.
The Greek agreement “has removed one of the major overhang in the market,” Jeffrosenberg Tan, a fund manager at PT Sinarmas Asset Management, said by phone from Jakarta. “The latest data from China provided some comfort for investors.”
Greek Prime Minister Alexis Tsipras achieved a settlement with his European creditors after almost 17 hours of talks in Brussels ending Monday morning.
The developing-nation gauge has fallen 1.9 percent this year and trades at 11.5 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has risen 2.1% and is valued at a multiple of 16.2. Bloomberg
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