Emerging-market stocks rose, paced by raw material producers and technology shares, after commodity prices climbed and International Business Machines Corp. (IBM) lifted its profit forecast, fueling speculation earnings will withstand the European and U.S. debt crises. The MSCI Emerging Markets Index added 0.4 percent to 1,126.63 at 3:58 p.m. in Manila. The gauge dropped 1.2 percent yesterday. India’s Bombay Stock Exchange Sensitive Index climbed 0.8 percent, while Russia’s Micex index increased 0.5 percent. China’s Shanghai Composite Index declined 0.7 percent, the steepest loss in a week. IBM, the world’s biggest computer-services company, lifted its full-year earnings forecasts after posting second-quarter sales that beat analyst estimates. Catcher Technology Co. jumped by the daily limit in Taipei after three brokerages raised their share-price forecasts, while Realtek Semiconductor Corp. (2379) rallied as Morgan Stanley upgraded the company. “Debt concerns in the U.S. and Europe are casting shadows of doubt over the global recovery,” said Jonathan Ravelas, who helps manage about $1.5 billion at Manila-based Banco de Oro Unibank Inc. “Investors are looking for pockets of growth amidst this growing uncertainty so there’s renewed interest in sectors that will deliver earnings.” The MSCI Emerging Markets Index has lost 2.2 percent this year, trailing a 1.8 percent gain in the MSCI World Index of developed markets. Stocks in the index for developing equities are valued at 10.8 times estimated profit, less than the multiple of 12.5 times for developed countries. Europe, U.S. Debt The emerging-market index has retreated 6.7 percent since May 2, when it reached the highest in almost three years, dragged down by concern that Europe’s debt crisis will spread and monetary tightening from China to India will curtail growth. European Union leaders are trying to convince investors a second Greek bailout agreement will be reached in a July 21 meeting, while U.S. lawmakers are struggling to broker a deal on raising the nation’s debt ceiling before an Aug. 2 deadline. Catcher, which makes metal casings for Apple Inc. computers, jumped 6.9 percent after Citigroup Inc. and Macquarie Group Ltd. both raised their share-price estimates by 22 percent. Realtek Semiconductor increased 6.9 percent, the sharpest gain since Sept. 3, after the chip designer was raised to “equal-weight” from “underweight” at Morgan Stanley. IBM said second-quarter revenue rose 12 percent to $26.7 billion, topping a $25.4 billion average estimate of analysts surveyed by Bloomberg. The company raised its full-year earnings forecast to at least $13.25 a share, compared with analysts’ average estimate of $13.21. Apple Inc. and Intel Corp. are among other U.S. technology companies set to release results this week. Tata Consultancy, Samsung Tata Consultancy Services Ltd. (TCS), an Indian software company, added 1.8 percent in Mumbai and Samsung Electronics Co., Asia’s largest chipmaker, rose 1.1 percent. Korea Zinc Co. jumped 4 percent in Seoul, while Jiangxi Copper Co. increased 0.9 percent in Hong Kong. Gold rallied for a 12th day to a record high, copper gained for a third day in London, while oil rose 0.8 percent in New York. China Merchants Bank Co., the nation’s sixth-biggest lender, lost 1.4 percent to the lowest close since June 20 amid plans to raise as much as 35 billion yuan ($5.4 billion) in a rights offer. The bank will offer 2.2 shares for every 10 existing shares held by investors at a price that will be set later, it said in a statement yesterday. SAIC Motor Corp., China’s biggest automaker, slid 2 percent to the lowest level since June 22 in Shanghai after Sinolink Securities Co. said more local governments may introduce measures to limit car purchases. FAW Car Co., Volkswagen AG’s partner for passenger cars in China, slumped 2.5 percent in Shanghai. To contact the reporter on this story: Ian Sayson in Manila at isayson@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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