Emerging Stocks Rise for Fourth Day as Won Reaches Two-Year High

Emerging-market stocks gained for a fourth day, led by consumer and technology companies. The South Korean won approached a two-year high and the Indian rupee strengthened.

Hyundai Motor Co. (005380), South Korea's biggest automaker, climbed to the highest level this month. Largan Precision Co. (3008), which makes camera lenses for Apple Inc. products, jumped to the highest in almost three months. Qatar's stock index rose to a five-year high as Moody's Investor Service said the nation's Aa2 rating is supported by non-hydrocarbon growth. Russia's Micex Index advanced to the highest since Nov. 1. The won gained 0.2 percent and the rupee rose to the highest in almost two weeks.

The MSCI Emerging Markets Index added 0.4 percent to 1,028.94 as of 3:29 p.m. in Hong Kong, poised for the highest close since Oct. 31. The gauge has rallied 5 percent in the past four days as China's biggest package of reforms since the 1990s spurred speculation that the world's second-largest economy will post more sustainable growth. Investors may get clues on the outlook for U.S. stimulus when Federal Reserve Chairman Ben S. Bernanke speaks in Washington later today.

"There is optimism that China's plan lays down the groundwork for sustained economic growth, while the threat of U.S. tapering is softened by signs that policy will remain accommodating," said Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank Inc., the largest Philippine lender by assets.

Largan Jumps

The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong increased 0.5 percent to the highest close since March 11. The gauge has jumped 11 percent in the past four days. The Shanghai Composite Index fell 0.2 percent, the first loss in four days.

Largan Precision surged 7.3 percent to the highest close since Aug. 22. Investors are speculating the company may get an order next month from Samsung Electronics Co., according to Yuanta Securities Co. analyst Dennis Chan. The company doesn't comment on client orders, Josephine Huang, deputy spokeswoman for Largan, said by phone today.

Hyundai Motor rose 1.8 percent to the highest level since Oct. 30, while Samsung Heavy Industries Co. climbed 4.1 percent to the highest close since Oct. 24.

South Korea's Kospi index and the FTSE Bursa Malaysia KLCI Index both increased 1 percent, while the Philippine Stock Exchange Index (PCOMP) fell 1.2 percent.

Energy Development

South Korean and Malaysian equities were raised to overweight and Philippine stocks cut to neutral by Masatoshi Kikuchi and Kengo Yoshida, strategists at Mizuho Securities, in a note dated yesterday.

Qatar's QE Index rallied for a seventh day, rising 0.5 percent. The gauge is heading for the highest close since September 2008 after Moody's said the nation has "exceptional economic and government financial strength."

The Micex Index rose 0.3 percent. Bashneft OAO (BANE) climbed 2.3 percent, heading for the highest close this month. The oil producer is preparing for a London share sale by September 2014, Vedomosti reported, citing unidentified people.

Energy Development Corp. (EDC), the largest Philippine generator of geothermal power, tumbled 12 percent, the sharpest loss since April 2009. The company said none of its Leyte plants damaged by Typhoon Haiyan are operable and it's invoking force majeure under a purchase contract with National Power Corp.

The won rose 0.2 percent against the dollar as global investors bought more South Korean shares than they sold. India's rupee strengthened 0.7 percent to the highest level in almost two weeks.

The MSCI Emerging Markets Index has lost 2.5 percent this year and trades at 10.8 times projected 12-month earnings. The MSCI World Index has advanced 21 percent this year and is valued at 14.6 times, the most expensive since October 2009, data compiled by Bloomberg show.