* MSCI emerging mkts index at 2 1/2-wk high
* Chinese PMI shows rate of manufacturing decline slowing
* Romanian leu off record lows on political hopes, interest
rate
* Hungarian forint hits 7 1/2-month high on aid hopes
By Clare Kane
LONDON, May 2 (Reuters) – Emerging stocks rallied to a 2
1/2-week high on Wednesday as manufacturing data reassured
investors, while Romania’s leu rose off record lows as the
central bank held interest rates steady and hopes grew of an end
to political deadlock.
The rate of deterioration in Chinese manufacturing slowed in
April, indicating a pick-up in the world’s second-largest
economy after a slow first quarter, while U.S. factory activity
grew at its strongest rate in 10 months, assuaging fears about a
global slowdown.
The MSCI emerging markets index was up 0.6 percent, its
highest since April 13, with Hungarian and Romanian stocks up 1
percent following Tuesday’s public holiday,
despite poor purchasing managers’ index factory data across
central Europe.
“We have had a weak bunch of data this morning from central
and eastern Europe,” said Neil Shearing, chief emerging markets
economist at Capital Economics in London.
Continued…
