BLBG:Most Emerging Stocks Rise As Hyundai Gains; Oil Stocks Decline
Most emerging-market stocks rose, led by consumer discretionary companies as Hyundai Motor (005380) Co. and its affiliate sold more vehicles in the U.S. Energy stocks declined.
Hyundai Motor, South Korea’s biggest carmaker, climbed the most in two weeks and led consumer discretionary companies to the steepest gain among 10 industries. China Cosco Holdings Co. surged 7.3 percent in Hong Kong after Drewry Shipping Consultants Ltd. said container lines will make a profit this year. Oil & Natural Gas Corp. led energy stocks lower after oil dropped from a one-month high.
Four stocks gained for every three that fell in the MSCI Emerging Markets Index (MXEF), which slid 0.1 percent to 956.31 as of 3:51 p.m. in Hong Kong. The gauge is headed for its first decline in four days. The Micex Index (INDEXCF) dropped 0.7 percent in Moscow, the steepest intraday loss since June 28, as crude oil, the nation’s biggest export earner, declined. The gauge jumped 2.5 percent yesterday. The WIG20 Index slipped 0.4 percent in Warsaw. The FTSE/JSE Africa All Share Index advanced 0.3 percent in Johannesburg.
The European Central Bank will cut interest rates tomorrow, according to a Bloomberg survey of economists. The 21 countries in the developing-nation gauge send about 30 percent of their exports to the European Union on average, data compiled by the World Trade Organization show.
The ECB will lower their benchmark rate by 25 basis points to a record low 0.75 percent tomorrow, according to the median forecast in a Bloomberg survey of 57 economists.
The developing nation gauge has advanced 4.3 percent this year, compared with a 5.8 percent gain in the MSCI World Index. Shares in the emerging-markets index are trading at 10.3 times estimated earnings, compared with the MSCI World’s multiple of 12.4, according to data compiled by Bloomberg. U.S. financial markets are closed today for the Fourth of July holiday.
--Zhang Shidong. With assistance from Jason Webb in London. Editors: Chan Tien Hin, Darren Boey
To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
