The iShares MSCI Emerging Markets Index exchange-traded fund was set for the longest rally in six years after data showed Chinese exports grew more than estimated. Meanwhile, Brazil’s Ibovespa approached a bull market.
The developing-nation ETF added 1.5 percent to $40.59 at 11:30 a.m. in New York in an eight-day rally. The MSCI Emerging Markets Index rose 1.7 percent to 972.16, poised for the highest since June. Benchmark gauges from China to Thailand and Turkey gained more than 3.3 percent, while Russia’s Micex Index advanced for a sixth day.
Brazil’s Ibovespa extended a surge from its July low to 20 percent. Russia is said to be offering its first bonds in euros and benchmark debt in dollars.
Stocks joined a global rally as China’s exports rose more than estimated in August and inflation stayed below a government target, helping Premier Li Keqiang sustain a rebound in the second-largest economy from a two-quarter slowdown. Russia plans two bonds in euros and three in dollars, according to a person with direct knowledge of the offerings, who asked not to be identified because the information isn’t public.
“We’ve seen some good economic data coming out of China,” Timothy Ghriskey, the chief investment officer at Solaris Group LLC in New York, which manages over $1.5 billion, said by phone. “This is certainly another positive development that perhaps we’re seeing overall growth improve.”
All 10 industry groups in MSCI’s emerging-markets gauge rose, led by commodity and industrial companies. The broad measure has climbed 4.1 percent in four days, trimming this year’s drop to 7.9 percent, compared with a 13 percent increase in the MSCI World Index. The developing-nation index trades at 10.4 times projected 12-month earnings, trailing the MSCI World’s 13.8, according to data compiled by Bloomberg.
Price Swings
The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, fell 0.6 percent to 26.06. Eighteen out of the 24 developing-nation currencies tracked by Bloomberg gained, led by Malaysia’s ringgit, which posted the biggest advance since June.
Brazil’s Ibovespa was set for the highest level since May 29, led by iron-ore producer Vale SA. OGX Petroleo e Gas Participacoes SA tumbled after saying founder Eike Batista is challenging the company’s decision to exercise a put option requiring him to inject as much as $1 billion into the oil company. The real advanced 1 percent, after gaining 3.4 last week, the most since January 2012.
Bond Sale