Based on Positive Chinese Data, Emerging Market Stocks Surge Ahead

For the 1st time in the last 4 days, the emerging market stocks have seen a rise. The utilities sector rebounded and numerous analysts predicted that there will be a strong demand in the biggest developing nations across the world. The MSCI Emerging Markets Index increased by 0.3% and is at 1072.83 currently. On the other hand, the iShares MSCI Emerging Markets Index exchange traded fund also increased to $44.39, marking its biggest gain in the last 7 days. The VXEEM, also known as the Chicago Board Options Exchange Emerging Markets ETF Volatility Index, however experienced a decline of 3.1%. This index, incidentally, measures the options prices on the fund and also the investor expectations on the price swings.

The Hang Seng China Enterprises Index of the Chinese companies which are listed in Hong Kong experienced an increase of 0.9%. This marks its biggest gain within a week. The Philippine Stock Exchange Index also jumped up by 0.7% and closed at a record high. The benchmark index of Thailand, SET Index also surged ahead by 0.4%; marking its highest close in the last 18 years. Incidentally, the officials of The Bank of Thailand have stayed away from introducing any changes in the policy interest rate.

In December, exports of China are expected to witness an increase of 5%. The biggest economy in the entire Asia, according to the analysts, has shown a growth of 7.8% in the last quarter of 2012. Incidentally, the 3rd quarter growth increase was of 7.4%.

According to the Director of Equities Investment Department of Manulife Asset Management Co., Jintana Mekintharanggur, investors are optimistic about the economy of China and many believe that this Asian powerhouse will turn out to be the biggest driver for the global economy in the New Year. Jintana added that any boost in China’s economy will help the other developing countries as well, because most of those depend on China, when it comes to exports.

The benchmark index of Brazil, Bovespa also rallied by 1%, whereas, the MSCI Brazil Utilities Index had an increase of 1.8%. The Brazilian Ministry of Energy sat for a meeting to discuss on the reservoir levels and the potential risks of energy rationing. According to insider sources, the Brazilian Government may arrange for loans through the BNDES Development Bank, if it seems to be mandatory.