LONDON, Jan 2 (Reuters): Indian shares led emerging market gains on Friday, boosted by fresh reform hopes and signs of an improving economy while most emerging currencies started the year under pressure from the strong dollar.
With Russian and Chinese markets shut and trading elsewhere thinned by the holiday season, emerging equities rose 0.25 per cent after closing 2014 with losses of 4.6 per cent. Indian equities rose 1.5 per cent to stand just 3 per cent off record highs hit early in December.
Data showed factory activity in India expanded at its fastest pace in two years as new orders flooded in, while falling inflation has raised expectations of interest rate cuts. Bank stocks hit record highs before a conference that could see more sector reforms unveiled.
Yet concerns about Chinese growth remain in place as the PMI index slipped. Hong Kong-listed Chinese shares rose however, adding to last year's gains that were partly fuelled by expectations that authorities would have to add stimulus.
"The November rate cut and the less restrictive lending controls seem not to be enough to stem the slowdown of the economy. It appears that the government will have to implement more easing actions in 2015, such as another interest rate cut and/or reserve requirement cuts," SEB analysts said in a note.
Indian stocks lead emerging shares higher in thin trade
FE Team | Published: January 03, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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