Emerging Markets Perform Better Thanks to Good Manufacturing Data of China

For 4 days straight, the stocks of emerging markets have seen a surge. The price swings in the benchmark index has fallen to the lowest within last 8 years. Incidentally, the gauge of Chinese manufacturing industry saw a surge and Israel also agreed to cease-fire favoring the overall economic condition of the world.

According to Christopher Palmer, the Director of London based asset management company, Henderson Global Investors Ltd., China’s manufacturing industry report was far better than the expectations and for investors; this Asian country remained the main show. Christopher also added that this growth in manufacturing industry proves that Chinese economy has started to expand again. The preliminary index released was measured at 50.4, more than the benchmark 50, which indicates expansion of an industry.

Samsung Electronics Co. went ahead to a record high (It surged by 2.4%) in Seoul and therefore led the gauge for technology companies to the highest level within the last 2 weeks. Incidentally, Samsung is the biggest manufacturer of Mobile Phones and Televisions in the world. The gauge of technology companies surged by 1.1%, which is the most among the 10 major industry groups. Incidentally, Apple’s plea to block selling of Samsung mobile phones in US was challenged by Samsung and they stated that the licensing agreement between Samsung and HTC is highly relevant to the Apple’s request. A federal judge has already ordered Apple to present those licensing terms in front of the court.

OAO RusHydro, the largest renewable energy producer of Russia, also experienced its biggest gain in the last 2 months. It rallied by 3.1%. Vladimir Putin, the President of Russia approved a $1.6 billion cash injection proposal and that certainly boosted the company big time. RusHydro will also be able to issue additional shares for a purpose of increasing capital.

Amidst the cease-fire decision finalization, the major currency of Israel, Shekel has also climbed to a stronger level.

The Hang Seng China Enterprises Index saw a jump of 0.9% and is at its 2-week high currently. The Shanghai Composite Index of China however plummeted by 0.7%. Due to the crude prices paring gains, Russia’s Micex lost a little bit though. Bovespa, on the other hand, rose higher, thereby reversing the losses that it suffered yesterday. Kospi index of South Korea surged by 0.8% to end up at the highest figures since 12th November, 2012.

Won, the major currency of South Korea weakened further though. Choi Jong Ku, the Deputy Finance Minister of the country announced that the Government is contemplating actions to curb the excessive fluctuations that Won is experiencing off late in the exchange rate.

Rand, the major currency of South Africa however gained, for the very 1st time in last 3 days. It is expected that the Central Bank of South Africa will keep the key interest rate at 5%, which will mark the lowest possible value of this rate in the last 30 years.

Pegas Nonwovens SA, the textile maker from Czech Republic saw an increase of 0.2% in its share prices. The 3rd quarter profit of the company surged by 57% and this has definitely helped the company in a big way. The National Societe Generale Bank saw its share prices decreasing by 5.7% and is currently at the lowest value since 23rd September. Bank of the Philippine Islands, on the other hand, rose by 1.8% and this marks a record high for the bank. Incidentally, the bank announced that they are negotiating with the Lucio Tan Group for a possible merge with the Philippine National Bank. If this merge actually formalizes, that would create the biggest lender in terms of assets for Philippines.

PT Gudang Garam and PT Indofood Sukses saw increases in share prices of 6.6% and 3.6% respectively. This helped the Indonesian consumer stocks to gain under a speculation that these results will boost the overall sales figures. JCY International Bhd. suffered in its share prices though after seeing a slid of 59% in its 4th quarter profit. This Malaysian hard disk drive supplier saw a tumble of 17.2%.