Traders who anticipated a year when riskier bets would pay off are overhauling their foreign- exchange positions after an emerging-markets rout led to the worst start to the year for currency funds since 2004.
UBS AG, Switzerland’s biggest bank, reported fourth-quarter profit that beat analysts’ estimates, helped by higher earnings at its main divisions as well as lower legal costs and a tax gain. The company plans to increase its dividend by 67 percent for 2013.
The selloff in emerging-market assets that sent the benchmark equity index to the lowest valuation since the 2008 financial crisis may have gone too far, according to UBS AG Chief Executive Officer Sergio Ermotti.
U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding following the biggest drop since June, as Treasuries retreated and Turkey’s lira led gains among emerging-market currencies. A gauge of stocks in developing nations extended its worst-ever start to a year.
Emerging-market stocks fell, extending the worst start to a year on record, on concern the global economic recovery will wane. Lenovo Group Ltd. drove a selloff in technology companies after five analysts downgrades.
UBS AG, Switzerland’s biggest bank, increased its bonus pool 28 percent for 2013 as it returned to profit after a loss the previous year on reorganization charges and a fine for trying to rig global interest rates.