Emerging-market stocks rebounded and Russia’s Micex Index rallied the most since May 2010 as President Vladimir Putin signaled a de-escalation of the crisis with Ukraine. The ruble climbed from a record low.
Ukraine’s bonds ended a three-day rally and the currency plunged to a record as Russia warned the former Soviet republic may default, while the nation’s interim leaders delayed a vote on a unity government.
Markets from Hungary to Poland and Russia are suffering contagion from the violence rocking Ukraine’s capital, sending bond yields higher and currencies lower as the turbulence afflicting developing nations deepens.
Michael Ganske, head of emerging markets research at Commerzbank AG in London, comments on China widening the yuan’s trading band to 1 percent from 0.5 percent, to take effect on April 16. He also speaks about the increase in the foreign-investment quota enacted by Chinese policy makers on April 3:
Emerging-market stocks advanced, led by the biggest rally in Turkey’s benchmark index in more than three months, amid speculation political tension in the country may ease. The lira strengthened, while Russia’s ruble declined.
Belarus is poised to become more reliant on Russia after President Aleksandr Lukashenko’s hard line on sales of potash, the country’s main natural resource, shattered an alliance that helped set the crop nutrient’s price.