Emerging Markets Extend Rally

Emerging market stocks are on a high like no other. It’s been the 9th day on a row when the emerging market stock prices have experienced gains. This marks the longest stretch of gains for the stocks in last 14 months. The Chinese industry and US manufacturing data helped the emerging markets big time today, as the faith of investors on global economy was restored.

The MSCI Emerging Markets Index increased by 0.3% and is at 1081.26 currently. Yesterday, the gauge climbed up by 2.1%, thereby marking its highest figure in the last 10 months. According to reports, the Chinese industries registered more growth in December, in comparison with the last 4 months. The manufacturing industry profits in US were also better than the initial expectations. The iShares MSCI Emerging Markets Index exchange-traded fund went down by 0.5% to $44.99. The Vanguard MSCI Emerging Markets ETF also slumped by 0.4% to finish at $42.27.

According to Deutsche Bank AG’s Emerging Market Strategist John Paul Smith, the Chinese sentiment has shown an amazing turnaround and this has helped the emerging markets big time as well. John added that investors’ confidence on Chinese economy is on a high never seen before.

The benchmark stock index of Brazil, Bovespa climbed up by 0.5%, thereby rising for the 3rd consecutive session. The 2nd biggest bank of this Latin American country by market value, Banco Bradesco SA also saw jump of 3.2%. The state controlled oil company of Brazil, Petroleo Brasileiro SA experienced surges after confirming new oil flow.

The PX Index of Czech Republic registered its first decrease in the last 3 days, slipping by 0.3%. On the other hand, the ISE National 100 Index of Turkey increased by 0.5%. The benchmark index of Dubai, DFM General Index also added 0.9% more to its yesterday’s value. The Hang Seng China Enterprises Index of the Chinese companies which are listed in Hong Kong jumped by 0.8%, whereas, the Jakarta Composite Index posted a gain of 1.2%. The Kospi Index of South Korea however had a worse fate as it declined by 0.6%.

Coming to individual company stocks, the biggest container maker in the world, China International Marine Containers Group Co. Ltd., registered a high gain of 15%. The biggest polysilicon (used in the solar panels) maker of South Korea, OCI Co. Ltd. also experienced the biggest gain since 2nd May.