By Gavin Serkin April 7 (Bloomberg) -- Emerging-market stocks rose for a ninth day and the Taiwan dollar led gains in higher-yielding currencies after the Federal Reserve indicated U.S. interest rates will stay near record lows. Yuan forwards advanced on speculation China will let its currency appreciate. The MSCI Emerging Markets Index added 0.5 percent to reach the highest level since July 2008 at 10:28 a.m. in London. The Taiwan dollar strengthened against all 16 of its most-traded peers. Futures on the Standard & Poor’s 500 Index fell 0.2 percent. Yuan forwards appreciated for a ninth day, the longest winning streak in more than a year. Greek bonds rose, narrowing the premium investors demand to hold two-year notes instead of benchmark German securities by 48 basis points. Fed minutes showed the U.S. is likely to keep rates on hold, nurturing the recovery in the world’s biggest economy, at the same time as Treasury Secretary Timothy F. Geithner prods China to revalue the yuan. Policy makers are considering allowing the yuan to trade against the ruble, the South Korean won and the Malaysian ringgit, according to an official at the China Foreign Exchange Trade System, as the nation diversifies its foreign reserves from the dollar. For the Fed, there’s “nothing on the radar screen to suggest that they want to raise rates,” Michael Dicks, head of research in London at Barclays Wealth, which oversees about $220 billion, said in an interview on Bloomberg Television. “The global economy is doing reasonably well. The corporate sector is also doing pretty well. That’s probably going to persist for some time.” Pakistan, Thailand The MSCI Emerging Markets Index extended its longest rally in almost six months, led by Asia. Pakistan’s Karachi 100 Index climbed 1.1 percent and the Stock Exchange of Thailand Index added 1 percent. Croatia’s Zagreb Crobex index gained 1 percent and Estonia’s OMX Tallinn index advanced 0.7 percent. Emerging-market currencies strengthened, with the Taiwan dollar appreciating for a third day against the U.S. currency, advancing 0.4 percent, and 0.5 percent against the yen. The ruble and Turkey’s lira climbed 0.1 percent against the dollar. The euro weakened, trading near its lowest level against the dollar in almost two weeks, after a report showed the economy of the 16 nations sharing the currency failed to grow in the fourth quarter. Greek two-year notes snapped five days of declines, rebounding from a record slide yesterday. The yield on the 2012 note fell 20 basis points, after climbing 124 basis points. The government plans to start marketing dollar-denominated bonds to U.S. investors this month. The two-year spread to bunds narrowed to 5 percentage points. Bonds sold by Germany, the region’s biggest economy, are used by investors as a benchmark. European Stocks The Stoxx Europe 600 Index slipped 0.1 percent as basic resources companies dropped. BHP Billiton Ltd., the world’s biggest mining company, fell 2.1 percent in London. Declines were limited as Allied Irish Banks Plc surged 14 percent in Dublin after Royal Bank of Scotland Plc recommended buying the shares. The MSCI Asia Pacific Index rallied 0.6 percent for a fifth day of gains, its longest winning streak since July, as the Bank of Japan said the recovery in the world’s second-largest economy is intact and Malaysia’s Prime Minister Najib Razak said growth may exceed forecasts this year. Mitsubishi UFJ Financial Group Inc. gained 2.7 percent in Tokyo. U.S. Futures The decline in U.S. futures indicated the S&P 500 may fall from an 18-month high. Consumer credit may have declined by $700 million in February after unexpectedly increasing $5 billion in the previous month, according to the median estimate of 34 economists in a Bloomberg News survey. The Fed’s report on borrowing is due at 3:00 p.m. in Washington. Fed policy makers last month saw an inflation slowdown that may persist, tempering any need to reverse record-low interest rates. At the same time, the Fed said its pledge to keep the main rate low for an “extended period” wouldn’t keep it from taking action when needed to keep inflation in check, according to minutes of the March 16 Federal Open Market Committee meeting released yesterday. Fed Chairman Ben S. Bernanke speaks in Dallas today on the topic of economic challenges. Nickel for delivery in three months fell 1.5 percent to $24,487 a metric ton on the London Metal Exchange, leading a decline in industrial metals. Crude oil retreated 0.5 percent to $86.44 a barrel in New York trading. To contact the reporter for this story: Gavin Serkin at gserkin@bloomberg.net

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