Emerging Stocks Rise to three-week high on China

by **Cals** Mon 17 Feb 2014, 18:50

Emerging Stocks Rise to three-week high on China

Business & Markets 2014

Written by Bloomberg

Monday, 17 February 2014 15:29

(Feb. 17): Emerging-market stocks rose, sending the benchmark index to a three-week high, after record new credit in China bolstered confidence in the world’s second- largest economy. Indonesia’s rupiah climbed for a fifth day.
China Life Insurance Co. led the Hang Seng China Enterprises Index to a second day of advances after UBS AG and Credit Suisse Group AG raised their ratings on the stock. GS Engineering & Construction Corp. paced a rally among South Korean builders on speculation home prices are rebounding. The rupiah headed for the longest wining streak since July 2011 versus the dollar, while the Philippine peso and Malaysia’s ringgit advanced by at least 0.4 percent.

The MSCI Emerging Markets Index added 0.5 percent to 962.38 as of 1:25 p.m. in Hong Kong, bound for the highest close since Jan. 23. The Shanghai Composite Index has erased a 5.9 percent decline this year as the lending figures and better-than- estimated trade in January offset signs of a slowdown in manufacturing. Aggregate financing, the broadest measure of credit, was 2.58 trillion yuan ($425 billion), the central bank said on Feb. 15. New local-currency lending was 1.32 trillion yuan, the highest level since 2010.

“The latest China data has reinforced the view that the economic recovery is sustainable,” Agus Yanuar, President Director at PT Samuel Aset Manajemen, said by phone in Jakarta.

The MSCI emerging markets gauge has declined 4 percent this year and trades at 9.3 times projected 12-month earnings. The MSCI World Index has dropped 0.5 percent in 2014 and is valued at 14.7 times, data compiled by Bloomberg show.