By BLOOMBERG
The MSCI Emerging Markets Index rebounded from Tuesday’s lowest close since 2009 as overseas shipments from the region’s largest economy climbed in December for the first time since June. The Hang Seng China Enterprises Index of mainland shares listed in Hong Kong led an across-the-board rally in Asian gauges. A measure of developing-nation currencies rose for the first time this year as China’s central bank set the yuan’s fixing little changed. South Africa’s rand strengthened the most in a month and Indonesia’s rupiah headed for its biggest daily gain this year.
Asian stocks tracked gains in US and European equities amid speculation a rout that had wiped more than US$5 trillion (RM21.9 trillion) from global share values this year had gone too far. The unexpected jump in Chinese exports suggested that a weaker yuan may be starting to boost the competitiveness of the world’s largest trading nation. The fourth steady fixing for the currency in a row, after it was cut by the most since August last week, supported exchange rates.
“Sentiment in Asia improved after US and European stocks recovered and the stability of the yuan also encouraged investors,” said Steve Wang, research director at Reorient Financial Markets Ltd in Hong Kong. “Uncertainties for the outlook remain as China has a lot of work to do in the year ahead. We need to see more signs of stability beyond today’s data.”
— By Harry Suhartono & Liau Y-Sing
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