Emerging economy stocks rebound

Singapore: Developing-nation stocks rallied, paring the MSCI Emerging Markets Index's steepest drop since June, as valuations near the lowest level in nine months lured investors and rising oil prices boosted energy companies.

The MSCI gauge climbed 1 per cent to 1,103.21 in New York, after a 2.2 per cent plunge yesterday that was sparked by concern Japan may be on the brink of a nuclear disaster. The 21-country gauge closed at 11 times estimated earnings yesterday, within 2 per cent of its cheapest level since May, according to data compiled by Bloomberg.

Benchmark indexes in South Korea and Taiwan rallied more than 1 per cent and the Nikkei-225 Stock Average surged 5.7 per cent after strategists at Goldman Sachs and UBS said global economic growth will help Japan recover from the March 11 tsunami.