* Emerging shares up 2 pct on China data, German sentiment
jump
* South African shares hit record high, rand extends
recovery
* Hungary forint up despite concerns over EU sanctions
By Sebastian Tong and Alessandra Prentice
LONDON, Jan 17 (Reuters) – Emerging stocks leapt 2
percent to their highest in two months on Tuesday as
better-than-expected Chinese growth numbers and a record rise in
German economic sentiment revived risk appetite.
South Africa’s All-share index hit an all-time high while
Hungary’s forint reversed a two-session loss, despite
expectations that the European Commission will soon launch legal
action against Budapest over its policies to curb the
independence of its media, judiciary and central bank.
Data showing China’s gross domestic product growing nearly 9
percent in the fourth quarter of 2011, overshadowed news of
Standard and Poor’s downgrading the credit rating of the euro
zone’s rescue fund late on Monday – a step SP said was all but
inevitable after it cut the ratings of nine euro zone member
states last Friday.
Hopes that the global economy can avoid a prolonged downturn
were reinforced by a monthly poll of German analyst and investor
sentiment which showed the largest single monthly increase since
the survey started in 1991.
By 1155 GMT, the key emerging equity index had
jumped 2.1 percent while emerging sovereign debt
tightened 5 basis points to trade 388 bps over U.S. Treasuries.
Continued…
