Emerging market stocks rising to 13 month high

(BLOOMBERG) - Emerging-market stocks rose, with the benchmark index headed for the highest level in 13 months, as a gauge of technology shares rallied to a record and China announced details of measures to boost lending.

LG Display Co. surged 6.4 percent in Seoul after Macquarie Bank Ltd. upgraded the shares. Agricultural Bank of China Ltd. increased to a five-month high to pace gains among lenders in Hong Kong.

The MSCI Emerging Markets Index added 0.5 percent to 1,054.27 at 9:30 a.m. in London, poised for the highest close since May 9, 2013.

A measure of technology shares has risen 14 percent this year, the most among 10 industry groups. China's central bank yesterday announced a 0.5 percentage point cut in reserve requirements for some banks, giving details of a policy move aimed at supporting smaller companies and agriculture.

The reserve-ratio cut and the rally in technology stocks are "all positive," said Khiem Do, Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd.

"Liquidity is still plentiful and global risks have reduced."

The emerging-markets index has gained 5.1 percent this year and trades at 11.1 times projected 12-month earnings, the highest level since April 2011, data compiled by Bloomberg show. The MSCI World Index has increased 4.5 percent and is valued at a multiple of 15.2.

Nine out of 10 industry groups in the developing-nations gauge rose, led by a 1.6 percent surge in the technology measure. LG Display jumped the most since March 17 after Macquarie raised its stock rating to outperform from neutral.

Nine Dragons Paper Holdings Ltd. rallied 6.6 percent in Hong Kong after Citigroup Inc. said the reserve-ratio cut will help the paper-making sector by improving liquidity.

The Shanghai Composite Index rose 1.1 percent, the steepest increase in a month. Citic Securities Ltd. climbed 2.9 percent, leading gains by brokerages, as authorities allowed new share sales to resume. Trading on the city's stock exchange has slumped the most among the world's 10 biggest markets this year as swings in shares fell to the lowest level in a decade.

Twelve-month non-deliverable yuan forwards climbed 0.18 percent against the dollar in Hong Kong, according to data compiled by Bloomberg.

The contracts have risen 0.9 percent in three days, the most since the period ended Jan. 3, 2012. The central bank raised the reference rate by 0.06 percent to 6.1451 per dollar today, the strongest since March 26. Rand Drops The rand slid for a second day.

Equity gauges in Indonesia, Taiwan and Thailand gained 0.7 percent. India's S&P BSE Sensex index slid from a record amid concern the rally that made it the best performer among emerging markets this year has exceeded the outlook for earnings. Engineering company Larsen & Toubro Ltd. halted a six-day, 13 percent surge.