By Shuli Ren Emerging markets followed the Wall Street higher today. The world’s two largest economies seem to be picking up pace. In the U.S., the Institute for Supply Management’s factory index showed a reading of 55.3 in June. China’s official manufacturing PMI rose to 51 from 50.8 in May. Brent crude fell to three-week low trading at $111.85 per barrel, after rebels in Libya said two oil ports they have held for a year are free to reopen. China: The Hong Kong Hang Seng Index advanced 1.6%. Hong Kong was closed for a public holiday yesterday. The Hang Seng China Enterprises Index rose 1.1%. The Hong Kong Monetary Authority (HKMA) had to step in and buy dollars for the first time since December 2012 to prevent the pegged Hong Kong dollar from rising against the U.S. dollar. “Demand for the Hong Kong dollar increased lately,� driven by “commercial activities,� according to the HKMA. China’s benchmark money rate fell 0.54 percentage points to 3.91%, after banks stop hoarding cash for the quarter-end regulatory checks. The Shanghai Composite Index gained 0.4%. To entice Chinese home buyers who are sitting on the sidelines and waiting for property price to drop further, some developers in the hardest hit real estate markets now offer to buy back homes above the purchase price to boost sales. India: Finance Minister Arun Jaitley warned that India could not afford populist policies. The S&P BSE SENSEX Index rose 1.3%, ahead of next week’s release of the first budget from Prime Minister Narendra Modi‘s office. Indonesia: Presidential candidate, former army general from the authoritarian Suharto era, Prabowo Subianto is gaining ground one week ahead of the presidential election. Wall Street Journal reports what kind of man Subianto is. The Jakarta Index gained 0.5%.

Source