The biggest drop in emerging-market stocks since October 2008 is giving money managers the chance to find bargains in world-class companies from Sao Paulo to Moscow that are leading their peers in profit growth.
The first Eurobond default by a Russian bank in more than a decade is failing to undermine investor confidence in financial firms’ debt as the biggest increase in lending since 2008 sends yields to a two-month low.
International Industrial Bank , the Russian lender controlled by lawmaker Sergei Pugachyov , became the country’s first bank to renege on its foreign debt since 1999 after defaulting on $453 million of bonds.
Russia’s first Eurobonds since 1998 are rebounding from the worst loss among developing government securities sold this year, approaching their issue price as confidence in the global economic recovery builds.
Chinese equities in the U.S. extended their longest stretch of gains since February on speculation policy makers will make further cuts to banks’ reserve requirements to bolster lending and spur growth.