Most emerging stocks advance before ECB; Hyundai Motor declines
By Bloomberg
Most emerging-market rose as China pumped funds into the financial system and investors speculated that the European Central Bank will expand stimulus. Hyundai Motor Co. led developing-nation consumer-discretionary shares lower.
PetroChina Co. led Hong Kong-traded mainland companies higher, while China Mobile Ltd. reached a six-year high. Indian and Indonesian equities headed for record highs. Hyundai Motor slid 2 percent in Seoul after its profit trailed estimates. Malaysia’s ringgit climbed for the first time in five days versus the dollar, while South Korea’s won lost 0.2 percent.
The MSCI Emerging Markets Index was little changed at 976.40 at 2:08 p.m in Hong Kong, with 328 stocks rising and 180 falling. ECB President Mario Draghi proposes spending 50 billion euros ($58 billion) a month through December 2016, two euro-area central-bank officials said before a meeting today. China’s monetary authority used open-market operations to add cash to the financial system for the first time in a year and boosted loans amid a seasonal fund shortage.
“The market is reacting positively to China’s liquidity news and the speculation that the ECB will undertake more stimulus,” Gavin Parry, managing director of Parry International Trading Ltd., said in Hong Kong.
The developing-nation gauge has gained 2.1 percent this year and trades at 11.5 times projected 12-month earning, data compiled by Bloomberg show. The MSCI World Index has fallen 1 percent and is valued at a multiple of 15.6.
Industry Groups
Five out of 10 industry groups in the emerging-markets measure climbed, led by telecommunications and health-care stocks. Consumer-related companies dropped the most. The Shanghai Composite Index added 0.3 percent and the Hang Seng China Enterprises Index advanced 0.6 percent.
PetroChina and China Mobile rallied at least 1.8 percent. Want Want China Holdings Ltd., which makes snack foods, sank 6 percent after Nomura Holdings Inc. downgraded the stock.
Sun Pharmaceutical Industries Ltd. rallied 3.4 percent to a record, as India’s S&P BSE Sensex extends gains for a sixth day. Indonesia’s Jakarta Composite Index climbed 0.6 percent, as PT Gudang Garam surged 5.8 percent.
Hyundai Motor slid the most in a month as declines in the Japanese yen and Russia’s ruble eroded overseas earnings at South Korea’s largest carmaker.
JG Summit Holdings Inc. plunged 11 percent in Manila after a share sale, dragging Philippine shares by the most in a month.
Equity gauges in Indonesia, Thailand and Malaysia advanced at least 0.5 percent. The ringgit added 0.3 percent, while the won weakened for a third day in four.