* Stocks rise half percent to 5-week high
* Hungarian stocks up 1.7 pct; forint at 2-wk high
* Turk lira hits 1-mth high vs dollar; yields down 10 bps
* Kazakh BTA bank bond at new lows as coupon hopes fade
LONDON, Jan 12 (Reuters) – Emerging equities rose to
five-week highs on Thursday, adding to gains after successful
bond sales in Spain and Italy while hopes of an IMF loan deal
allowed Hungary to sell more debt than planned, pushing the
forint to two week highs.
By 1245 GMT emerging stocks were up 0.7 percent
bringing gains so far this year to more than 4 percent. Asian
stocks earlier were mostly weaker after Chinese data showed
inflation at 15-month lows, tempering hopes of
monetary easing.
Emerging European stocks however took their cue from gains
on Western bourses, rising 1.6 percent after a
strong showing at bond auctions in Italy and Spain, with both
countries seeing a sharp drop in yields.
“There’s generally a better tone across the market, the
trend has been slightly positive.” said Roderick Ngotho, an
emerging FX strategist at RBS, citing the generally stronger
U.S. economic data flow in recent days. “There has been no
additional new negative news so far this year.”
The Bank of England stopped short of announcing extra
stimulus at its rate meeting while the European Central Bank
left interest rates unchanged after back-to-back cuts in
previous months.
Continued…
