Emerging-market stocks on Thursday gained for a third day after a gauge of Chinese services industries rose. The real fell the most in a week after Moody’s Investors Service lowered Brazil’s rating outlook, Bloomberg News reported.
The MSCI Emerging Markets Index added 0.8 per cent to 1,005.97 in New York. Benchmark measures in Turkey and India rose more than 1.4 per cent, while China Unicom (Hong Kong (HSCEI)) Limited and China Telecom Corporation jumped at least sevenper cent in Hong Kong after a report said the government may cut mobile interconnection fees. Brazil’s Ibovespa was set for the biggest weekly slump in a month and the real lost 0.6 per cent.
A Chinese services-industry index rose to a six-month high, adding to signs that the world’s second-biggest economy will sustain a rebound after a two-quarter slowdown. The iShares MSCI Emerging Markets Index exchange-traded fund slid for the first time in three days as data showed weaker-than-forecast growth in service industries and concern increased that the United States political impasse could lead to a recession.
“Emerging markets are doing well on the back of strong service PMI in China, Philippines upgrade to investment grade” by Moody’s Investors Service, Michael Ganske, the head of emerging markets at Rogge Global Partners Plc in London, said by e-mail. “A long-term US shutdown or even a technical default is not priced or even considered for the time being.”
All 10 industry groups in the MSCI Emerging Markets Index climbed, with technology, health care and financial companies adding more than oneper cent. Stock exchanges in China and South Korea are closed for holidays.Emerging stocks rise for third day by ngcareers