Emerging stocks rise to four-month high

Singapore: Emerging-market stocks rose, driving the benchmark index to the highest level in more than four months after Federal Reserve Chairman Ben Bernanke signalled plans to maintain near-zero interest rates through 2014 and Greek debt talks resumed.

The MSCI Emerging Markets Index gained 1.3 per cent to 1,012.34 in London, set for the highest close since September 8. The Hang Seng China Enterprises Index climbed 1.9 per cent as it traded for the first time this week following Lunar New Year holidays.

The ISE National 100 Index surged 3.2 per cent in Istanbul, on course for the biggest gain in two months. Benchmark indexes increased more than two per cent in Hungary and the Czech Republic and more than one per cent in Russia and South Africa.

The Fed said on Wednesday it sees "exceptionally low" interest rates through 2014, having previously pledged to refrain from raising borrowing costs until at least the middle of 2013. Charles Dallara and Jean Lemierre, negotiating on behalf of private creditors, return to Athens after European finance ministers insisted bondholders take bigger losses on Greek debt.

"For the first quarter, we are going to see the continuation of this rally in risky assets," Hans Goetti, the Singapore-based chief investment officer at Finaport Investment Intelligence, said yesterday. "The markets are looking for monetary easing by central banks which will be supportive of risky assets."

Rand surges

The rand appreciated two per cent against the dollar and the Mexican peso strengthened 1.6 per cent. The rouble gained 1.4 per cent and the lira rose 0.6 per cent.

Banks led gains among emerging-market stocks. Yapi & Kredi Bankasi, the Turkish bank part-owned by Italy's UniCredit, jumped as much as nine per cent. OTP Bank Nyrt, Hungary's largest lender, increased 4.4 per cent, helping the BUX Index gain 2.5 per cent. The Micex Index advanced 1.2 per cent in Moscow, led by a 5.2 per cent percent gain in VTB Group, Russia's second-biggest bank.

A US report is likely to show that orders for durable goods rose in December for a third month.