Emerging stocks rise as Malaysian shares rally on Fitch outlook

by **Cals** Thu 02 Jul 2015, 01:09

Emerging stocks rise as Malaysian shares rally on Fitch outlook

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By Bloomberg / Bloomberg | July 1, 2015 : 3:31 PM MYT

HANOI (July 1): Emerging-market stocks rose for a second day as technology companies advanced and [size=14]Fitch Ratings’s move to lift its outlook for Malaysia spurred a rally for the nation’s equities. The ringgit strengthened.

South Korea’s Samsung Electronics Co. rose 2 percent to lead technology shares higher. Malaysia’s benchmark index headed for the biggest advance in two years and the ringgit gained 1 percent. India’s S&P BSE Sensex increased toward a two-month high as drugmakers jumped. Chinese stocks fell after margin debt slumped for a seventh day and a factory gauge remained sluggish.

The MSCI Emerging Markets Index added 0.4 percent to 975.70 at 1:50 p.m. in Hong Kong. The gauge’s 10-day volatility, a measure of price swings, is near the highest level since December as European leaders wait for signs that Greek Prime Minister Alexis Tsipras is ready to compromise as his country buckles under capital controls and fails to make its International Monetary Fund payment.

“Investors are still very cautious given the unclear picture of Greece’s debt situation,” said Dang Tran Hai Dang, a Hanoi-based deputy manager of research at VietinBank Securities JSC. “The market will remain volatile.”

The developing-nation gauge has risen 2 percent this year and trades at 11.98 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has gained 1.5 percent in 2015 and is valued at a multiple of 16.

Samsung Advances

Nine out of 10 industry groups in emerging-markets measure rose, led by technology and health-care companies. Samsung gained the most in a week in Seoul as South Korea’s Kospi index climbed 1.1 percent. Largan Precision Co. jumped 4.4 percent in Taipei. Drugmakers Cipla Ltd. and Lupin Ltd. added at least 1.4 percent in Mumbai.

The Sensex advanced 0.8 percent, its second day of gains. A Bloomberg survey of Indian equity strategists showed the Sensex will rise 13 percent in the second half of 2015.

The FTSE Bursa Malaysia KLCI jumped 1.8 percent and the ringgit posted its steepest increase since June 18. Fitch raised the nation’s outlook to stable from negative, saying finances are improving and growth remains steady, according to a statement Tuesday. Fitch warned in March that there was more than a 50 percent chance of a downgrade.

The Shanghai Composite Index fell 0.4 percent, following the biggest swings in the nation’s gauge since the early 1990s. The official Purchasing Managers’ Index was 50.2 for June, trailing the median estimate of 50.4 in aBloomberg survey. A separate manufacturing index compiled by HSBC Holdings Plc ([You must be registered and logged in to see this image.] Financial Dashboard) andMarkit Economics was at 49.4, missing the projection of 49.6.
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