Emerging Stocks Cap Longest Rally Since October as Gazprom Jumps

Mar 26, 2014 4:54 pm ET

March 26 (Bloomberg) -- Emerging-market stocks rose for a fourth day, the longest advance since October, as OAO Gazprom led a rally in energy producers. Turkey’s Borsa Istanbul 100 Index surged the most in three months as banks climbed.

The MSCI Emerging Markets Index added 1 percent to 968.23. Turkish shares jumped 4.7 percent and the lira led gains among 31 world major currencies as the central bank said it may consider paying interest on a portion of their required reserves. The Micex Index climbed 1.9 percent as Gazprom surged, while India’s S&P BSE Sensex rose to a record. Brazil’s Ibovespa snapped a seven-day rally as phone company Oi SA sank.

Equities rose after a report showed American durable-goods orders, or items meant to last at least three years, increased more than forecast. Stocks pared gains as President Barack Obama said international order is being tested by Russia’s annexation of Ukrainian territory. The iShares MSCI Emerging Markets Index exchange-traded fund advanced for a fifth day, the longest streak since September, adding 0.2 percent to $39.90.

“If you believe the U.S. and other developed markets are going to have a good year with respect to economic growth, you need to come to the conclusion that some of that is going to spill over into emerging markets as well,” Wayne Lin, a money manager at Baltimore-based Legg Mason Inc., which oversees $695 billion, said by phone.

Turkish stocks climbed as policy makers are considering interest payments for the lira portion of lenders’ required reserves. Turkiye Garanti Bankasi AS and Akbank TAS advanced at least 6.1 percent.

Russia, India

Russia’s ruble strengthened for a fourth day and stocks advanced to the highest level in three weeks as investors wagered the crisis in Ukraine may be easing. Gazprom extended a two-day jump to 7.6 percent.

Indian stocks rose to a record and the rupee climbed as foreign investors extended Asia’s largest equity-market inflows. Chinese stocks trading in Hong Kong climbed to the highest level in a month after earnings from Agricultural Bank of China Ltd. to China Mengniu Dairy Co. topped estimates.

Brazilian stocks fell amid speculation that a rally that pushed valuations on the Ibovespa stock benchmark to a six-week high was excessive given signs that the economy is weakening. Oi sank the most since October after securities regulators sided with controlling shareholders in a dispute over a planned merger with Portugal Telecom SGPS SA.