JAKARTA: Emerging stocks rose for the first time in four days as Samsung Electronics Co. led a rally in technology shares. The ringgit climbed to the strongest level in four months on Malaysia’s plans to cut the budget deficit.
Samsung, the world’s largest maker of smartphones, increased 2.2 percent to the highest level since June after at least two brokerages raised their share-price estimates. Delta Electronics Inc. advanced to a record in Taipei. Zoomlion Heavy Industry Science & Technology Co. jumped the most in seven weeks after a Chinese newspaper apologized for publishing unverified stories questioning the company’s finances. The ringgit appreciated for a fourth day, climbing 0.7 percent.
The MSCI Emerging Markets Index advanced 0.4 percent to 1,031.39 as of 1:57 p.m. in Hong Kong, heading for its biggest gain in a week. Technology shares have posted the biggest gains among 10 industries in the 21-country gauge this year. Korea Investment & Securities Co. and HI Investment & Securities Co. raised their targets for Samsung after the company posted record third-quarter profit last week.
“Earnings from the sector have been encouraging,” Akbar Syarief, a Jakarta-based money manager of PT MNC Asset Management, which oversees about $372 million, said by phone.
The MSCI Emerging Markets Information Technology Index increased 1.4 percent, heading for the biggest gain since Oct. 18. Delta Electronics rallied 3.3 percent after Taiwan’s Central News Agency said the display maker’s shipments will increase. Naver Corp., a South Korean web portal operator, advanced 4.6 percent as E*Trade Securities and Meritz Securities raised their price targets.
China Oilfield Services Ltd. jumped 7.7 percent, the biggest gain on the MSCI Emerging Markets Index, after reporting a 40.1 percent increase in nine-month net income.
Zoomlion advanced 5.4 percent. Xinkuaibao apologized for failing to verify stories by its reporter Chen Yongzhou, following a report aired by state-run China Central Television on Oct. 27 that showed footage of Chen being interrogated by police in Changsha.
The ringgit strengthened for a fourth day. Malaysia’s government plans to introduce a 6 percent GST rate in April 2015 in an effort to shrink the shortfall between revenue and spending to 3.5 percent of gross domestic product next year from 4 percent in 2013. The economy will expand 5 percent to 5.5 percent next year from an estimated 4.5 percent to 5 percent in 2013, according to the finance ministry’s economic report issued the same day.
Brilliance China Automotive Holdings Ltd. fell 4.6 percent for the biggest decline in the MSCI emerging-market index. The stock retreated from a record close after Citigroup Inc. cut its recommendation to sell from neutral.
The MSCI gauge has declined 2.2 percent this year and is valued at 11 times estimated earnings for the next 12 months, according to data compiled by Bloomberg. That compares with a multiple of 14 for the MSCI World Index of developed-nation shares, which has surged 20 percent this year. -- BLOOMBERG