Emerging Stocks Rise as Commodities Gain; Rupee Jumps on Tax Cut
The MSCI Emerging Markets Index increased 1 percent to 1,007.76 at 1:20 p.m. in London, trimming this week’s loss to 0.6 percent. India’s benchmark gauge jumped to a one-year high and the rupee rallied the most among major currencies on tax cuts that added to policy reforms last week. Samsung Electronics Co. (005930) gained 1.2 percent in Seoul after a 3.7 percent slump the past four days. Russia’s ruble snapped a four-day decline as oil pared its biggest weekly drop in three months and South Africa’s rand gained for the first time in three days as metals rose.
Stocks rebounded following the biggest decline since July yesterday when data signaled Chinese manufacturing probably contracted in September for an 11th month. Global equity funds lured the largest weekly inflows this year after the Federal Reserve and the European Central Bank announced plans to buy bonds to support growth, according to Citigroup Inc. Commodities rose, trimming the first weekly drop since July.