Emerging stocks rise for eighth day on economic growth outlook
Friday, 18 June 2010
SINGAPORE, June 17 (Bloomberg): Emerging-market stocks advanced for an eighth day, the longest stretch of gains in two months, on speculation the global economy will withstand China's tightening measures and Europe's sovereign-debt crisis.
The MSCI Emerging Markets Index rose 0.2 per cent to 945.64 as of 2:21 p.m. in Shanghai, bringing its eight-day gain to 6.3 per cent. Most benchmark gauges advanced among Asia's developing markets, with Taiwan's Taiex Index climbing 0.8 per cent to a one-month high.
The MSCI index has declined 9.7 per cent from this year's high in April as China introduces policies to curb record gains in property prices and as European nations cut spending amid the region's debt crisis. The drop means the gauge is valued at 12.1 times estimated earnings, down from 16.6 times at the start of the year.
"We don't see a double dip scenario," Pu Yonghao, chief Asian investment strategist at UBS Wealth Management, said in an interview in Hong Kong. "After such a correction, valuations look extremely attractive and earnings growth remains solid and on the macro, we don't have any sovereign-debt issues in Asia."
A Federal Reserve report yesterday showed industrial production in the US rose 1.2 per cent in May, the most since August. Reports released last week also showed surging exports, industrial production and retail sales in China, the world's fastest-growing major economy.
Nanya Technology Corp, Taiwan's second-largest chipmaker, and Inotera Memories Inc gained more than 5 per cent on speculation second-half demand may be boosted by students heading back to school and consumers replacing older equipment, according to Grand Cathay Securities Corp analyst Julian Wang.
India's Sensitive Index advanced 0.1 per cent for a seventh-straight gain. Ramsarup Industries Ltd, an Indian maker of steel wire, rose as much as 19 per cent in Mumbai after the Business Standard said ArcelorMittal may buy a stake.
The MSCI Emerging Markets Index rose 0.2 per cent to 945.64 as of 2:21 p.m. in Shanghai, bringing its eight-day gain to 6.3 per cent. Most benchmark gauges advanced among Asia's developing markets, with Taiwan's Taiex Index climbing 0.8 per cent to a one-month high.
The MSCI index has declined 9.7 per cent from this year's high in April as China introduces policies to curb record gains in property prices and as European nations cut spending amid the region's debt crisis. The drop means the gauge is valued at 12.1 times estimated earnings, down from 16.6 times at the start of the year.
"We don't see a double dip scenario," Pu Yonghao, chief Asian investment strategist at UBS Wealth Management, said in an interview in Hong Kong. "After such a correction, valuations look extremely attractive and earnings growth remains solid and on the macro, we don't have any sovereign-debt issues in Asia."
A Federal Reserve report yesterday showed industrial production in the US rose 1.2 per cent in May, the most since August. Reports released last week also showed surging exports, industrial production and retail sales in China, the world's fastest-growing major economy.
Nanya Technology Corp, Taiwan's second-largest chipmaker, and Inotera Memories Inc gained more than 5 per cent on speculation second-half demand may be boosted by students heading back to school and consumers replacing older equipment, according to Grand Cathay Securities Corp analyst Julian Wang.
India's Sensitive Index advanced 0.1 per cent for a seventh-straight gain. Ramsarup Industries Ltd, an Indian maker of steel wire, rose as much as 19 per cent in Mumbai after the Business Standard said ArcelorMittal may buy a stake.