Emerging Shares Soar on Putin’s Remarks

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Emerging Shares Soar on Putin’s Remarks

Shares of emerging markets advanced for a fourth day as President Vladimir Putin said Moscow will spare no efforts to see an end to fighting in Ukraine, triggering hopes of de-escalation of hostilities.

The Micex Index ascended to a three-week high. The Ibovespa halted a two-day decline on speculation the Brazilian president DilmaRousseff is more likely to lose in the coming elections after one her rival presidential contestants died, altering the landscape for the race. LLP SA, a Polish clothier soared after MSCI Inc. announced it was promoting the stock to its developing-nation index. The ruble rallied 0.2% against the dollar. Won of South Korea advanced the most among Asia currencies as the central bank reduced interest rates.

The MSCI Emerging Markets Index soared 0.1% to 1,072.10 as of 1:30 pm in New York, extending its four-day surge to 2.5%. Putin said Russia should not build walls around itself and will do all in its power to end the chaos in Ukraine.

The MSCI Emerging Markets Index soared 0.1% to 1,072.10 as of 1:30 pm in New York, extending its four-day surge to 2.5%. Putin said Russia should not build walls around itself and will do all in its power to end the chaos in Ukraine.

“Putin’s speech reassured investors.This gives hope that markets won’t see an escalation in the geopolitical situation,” Vladimir Miklashevsky of Helsinki-based Danske Bank told Bloomberg in an email.

A Bloomberg index monitoring 20 developing-nation currencies added 0.3% in its second day of upward trajectory.

In  Sao Paulo, Brazil, the Ibovespa increased 0.2%. Brazilian equities advanced after Eduardo Campos died in a plane accident yesterday, paving way for his running mate, Marina Silva, to run for president instead.

The Micex was up 0.6% in Moscow, bringing its five-day rally to 5.6%, the longest winning streak since the six days ended May 14.

According to Reuters, investors are concerned about the prospects for central and easternEurope because of the impact of Western sanctions and Russia’s counter-measures.

“We don’t expect the recovery in central and eastern Europe to go into reverse over the coming months and quarters, but growth is likely to remain slower than the rates seen at the start of this year,” said Capital Economics analysts.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com