Emerging-market stocks rose for the first time in three days as an unexpected increase in Japan’s asset-purchase program boosted metals and fueled speculation that central banks will revive global growth.
Just three months after the biggest developing economies sold dollars to support their currencies, policy makers from Colombia to China are moving to weaken exchange rates and revive exports as the International Monetary Fund forecasts the slowest trade growth in three years.
Yields on Russian government bonds are falling to the lowest level in almost four months compared with developing nations in Europe as rallying oil prices boost confidence in the world’s largest energy exporter.
Turkish bond yields are rising faster than the rest of emerging-market debt and still can’t entice the world’s biggest investors, who say policy makers won’t curb inflation unless they take steps to slow growth.
Eastern Europe, whose banks are the world’s most dependent on foreign funding, may benefit in the long term from a pullback by western lenders as economic imbalances abate to leave a sturdier platform for growth.
Hungary will probably be able to sustain state finances even as Moody’s Investors Service cut the country’s debt rating, on expectations the new government will continue to narrow the budget deficit, Aviva Investors said.