Emerging-Market Stocks Extend Record Quarterly Rally on Oil

By Laura Cochrane
June 30 (Bloomberg) -- Emerging-market stocks rose, extending a record quarterly gain, as oil climbed above $73 a barrel and metals prices increased, boosting commodity producers.
The MSCI Emerging Markets Index advanced for a fifth day, adding 0.2 percent to 766.51 at 8:46 a.m. in London. The index of 22 developing economies has rallied 35 percent since March 31, heading for its best quarter since data began in 1988.
Crude rose as much as 2.6 percent to an eight-month high $73.38 a barrel in New York and copper increased for a second day in London, helping spur a 3.9 percent gain in Kazakhstan’s KASE Stock Exchange Index. The Dubai Financial Market General Index jumped 2.6 percent. Russian oil producer OAO Tatneft rose 5.7 percent and Dogan Sirketler Grubu Holding AS, a Turkish industrial group with interests in energy, added as much as 9.4 percent to the highest since January 2008.
The outlook is “far more optimistic” than for developed economies, Mark Faber, publisher of the Gloom, Boom and Doom report, said today at an AsianInvestor magazine forum in Seoul. Emerging markets including China are becoming more significant to the global economy as growth picks up and “I don’t think this will be reversed,” he said.
The 35 percent gain in the MSCI Emerging Markets Index this quarter outstrips the 21 percent increase in the developed- market MSCI World Index.
The extra yield investors demand to own developing nations’ bonds instead of U.S. Treasuries fell one basis point to a seven-day low 4.45 percentage points, according to JPMorgan Chase & Co.’s EMBI+ Index.