Samsung Electronics Co. gained on Tuesday and led technology companies higher causing emerging-market stocks climb for a third day. Chinese mobile companies rebounded, according to Bloomberg.
Samsung jumped 1 percent in Seoul after Morgan Stanley said earnings have probably bottomed. Morgan Stanley analyst Shawn Kim said Samsung may see margin improvements in next few quarters.
The MSCI Emerging Markets Index added 0.2 percent to 1,012.06 at 2:07 p.m. in Hong Kong. The gauge recovered at the end of last week after the lowest valuations in four months lured investors. Hong Kong’s authorities agreed to start formal talks with pro-democracy protesters as demonstrations that shut roads and offices in the city showed signs of winding down. The Federal Open Market Committee releases minutes from its Sept. 16-17 meeting tomorrow.
“Valuations are still attractive,” Ang Kok Heng, chief investment officer of Phillip Capital Management Sdn.,which manages $428 million, commented by phone to Bloomberg in Kuala Lumpur. “Investing in emerging market is still the way for the longer term.”
The developing-nation gauge has risen 1 percent this year and trades at 10.9 times projected 12-month earnings, data compiled by Bloomberg show.
The MSCI World Index has advanced 1.3 percent this year and is valued at 14.6 times.
Nine out of 10 industry groups in the MSCI Emerging Markets Index climbed, led by telecom and technology companies. Samsung, the world’s largest maker of smartphones, rose for a second day, the biggest boost to the developing-nation gauge.
China Mobile, the world’s largest phone company by users, gained 1.9 percent, poised for the highest close since Sept. 25.
China Unicom (Hong Kong) Ltd. ended a sixth-day slump after Barclays Plc upgraded the stock.
China Cinda Asset Management Co. led a 0.6 percent gain in Hong Kong-traded mainland shares after Goldman Sachs Group Inc. upgraded the stock.
The Hang Seng China Enterprises Index (HSCEI) advanced for a third day. China Cinda jumped 5.1 percent after Goldman raised its rating on the company to conviction buy from neutral. Guangdong Investment Ltd. rose 4.7 percent in Hong Kong after Goldman increased its price target by 17 percent.
Hyundai Merchant Marine Co., which owns part of a tour operator in a North Korean resort, rallied 7.8 percent in Seoul, the most in the MSCI Emerging Markets Index. The stock extended yesterday’s 15 percent surge after the North and South agreed on better ties. The Kospi index rose 0.2 percent.
Equity gauges in Indonesia, Vietnam and Malaysia added 0.3 percent. Taiwan’s Taiex index dropped 0.6 percent, its second day of losses, while the S&P BSE Sensex index declined 0.5 percent. The rupee headed for the largest gain since Sept. 12 amid optimism the falling oil price will help narrow the nation’s trade deficit.
