Emerging-Market Stocks Advance a Third Day After Global Rout

Emerging-market stocks rebounded for a third session on speculation a five-day slump was exaggerated given prospects for economic and earnings growth.

India's Sensitive Index had its biggest gain in eight months after the country's prime minister said the economy may expand more than 9 percent this year. Malaysia's stocks jumped the most since July 2003 after JPMorgan Chase & Co. lifted a forecast for the shares, citing earnings growth.

Equity benchmarks for Indonesia, Poland, Turkey and South Africa also climbed.

``As long as these volatile declines are not a result of fundamental changes in these economies, there's no reason to take it too seriously,'' said Idan Azulay, who helps manage the equivalent of $1.2 billion at Epsilon Investment House Ltd. in Tel Aviv. ``We opt for stock picking and look for opportunities.''

The Morgan Stanley Capital International Emerging Markets Index rose 1.4 percent to 878.46 as of 1:54 p.m. in London, bringing the three-day advance to 4.1 percent. The measure is still 6.9 percent below a record high reached on Feb. 22, following a global stocks rout that began on Feb. 27.

Stock indexes climbed throughout Asia and Europe today and U.S. stock-index futures rose on speculation earnings, takeovers and economic expansion will help shares recoup losses from the sell-off.

The Bombay Stock Exchange's Sensitive Index, or Sensex, jumped 3.7 percent, the most since June 30. The measure is still down 11 percent from its Feb. 8 record close.

Growth `Intact'

``India's story of growth remains intact,'' said Sanjay Dongre, who oversees about $1 billion in stocks at UTI Asset Management Co. in Mumbai.

Prime Minister Manmohan Singh said the nation's economy may expand more than 9 percent in the current fiscal year and growth is a ``necessary condition'' to eradicate poverty in the country.

ICICI Bank Ltd., the country's second-largest lender, rose 4.5 percent to 863.4 rupees. Infosys Technologies Ltd., India's second-biggest software exporter, climbed 2.4 percent to 2,142.35 rupees. The two stocks account for about a fifth of the Sensex by weight.

In Malaysia, the Kuala Lumpur Composite Index rose 2.6 percent. JPMorgan raised its end-of-year forecast for the measure by 12 percent to 1380, according to a report yesterday from Adrian Mowat, regional equity strategist at the bank. Corporate profits will probably rise in the next 12 months, leading investors to grant a larger price-earnings multiple to Malaysian stocks, Mowat wrote.

Nickel at Record

Genting Bhd., Asia's biggest publicly traded casino operator, surged 5.8 percent to 36.75 ringgit. Malayan Banking Bhd., or Maybank, added 2.5 percent to 12.30 ringgit.

The Jakarta Composite Index rose 1.6 percent, led by PT International Nickel Indonesia. The shares gained after the company reported that fourth-quarter profit quadrupled and after nickel prices reached an all-time high.

Poland's benchmark WIG20 Index climbed 3.1 percent, the most since Jan. 18. KGHM Polska Miedz SA led the advance.

In Turkey, the ISE National 100 Index rose 2.1 percent. South Africa's FTSE/JSE Africa All Share Index rallied 1.3 percent.

source:www.bloomberg.com