Emerging-market stocks rose for a 10th day Friday, headed for the longest winning streak in almost five years as shares in Shanghai extended their world-beating gain to a seven-year high.
The Shanghai Composite Index closed above 4,000 for the first time since 2008 after data showed the risk of broad-based deflation in China is easing. The Ibovespa gained for a second day as Brazil’s finance minister affirmed the government’s commitment to shoring up the country’s balance sheet. The Kospi Index jumped to the highest since 2011 after Moody’s Investors Service raised South Korea’s credit outlook to positive.
The MSCI Emerging Markets Index added 0.5 percent to 1,033.39, pushing the 10-day advance to 7.9 percent. The gauge rallied 3.9 percent for the week. New investors flocked to Chinese equities at a record pace, with mainland buying spilling over into Hong Kong through the city’s exchange link with Shanghai, as traders took out unprecedented debt to amplify their buying power.
“Lots of domestic money is flowing into Hong Kong-listed shares,” Leopold Quell, a co-fund manager at Raiffeisen Capital Management in Vienna, said by e-mail. “This bull market has good chances to grow further.”
The developing-nation gauge has risen 8.1 percent this year and trades at 12.4 times projected 12-month earnings, the most expensive since April 2010. The MSCI World Index has gained 3.9 percent in 2015 and is valued at a multiple of 16.9.
The Ibovespa jumped 0.6 percent. Finance Minister Joaquim Levy said the government is seeking to bolster investors’ confidence in the country. The Kospi Index jumped 1.4 percent to the highest level since August 2011.
The Kospi Index jumped 1.4 percent to the highest level since August 2011. The nation’s credit outlook was revised to positive from stable by Moody’s, which cited improved public debt management.
