“Emerging-market stocks rose to a seven-week high as Malaysian shares rallied to a record after Prime Minister Najib Razak won elections, U.S. jobs growth bolstered confidence in the global economy and higher oil prices lifted producers.
UEM Land Holdings Bhd. (ULHB) jumped 13 percent in Kuala Lumpur, while CIMB Group Holdings Bhd. (CIMB), Malaysia’s second-largest lender by assets, had its steepest gain since July 2003. The ringgit strengthened the most since 2010. OAO Rosneft, Russia’s largest oil company, advanced to a three-week high. Turk Hava Yollari AO (THYAO), Turkey’s flagship airline, headed for an all-time high.
The MSCI Emerging Markets Index gained 0.5 percent to 1,047.42 at 12:05 p.m. in London, the highest since March 14 on a closing basis. Najib’s coalition extended its 55-year rule, which may allow him to proceed with plans to narrow the budget deficit and boost investments. U.S. payrolls grew by 165,000 last month, more than economists estimated, the Labor Department said May 3.
“The election results in Malaysia were a positive surprise for investors,” Aldo Perkasa, who helps manage about $2 billion at PT Mandiri Manajemen Investasi, said by phone from Jakarta. “The U.S. employment data drove the overall macroeconomic sentiment higher.”
The FTSE Bursa Malaysia KLCI Index rose 3.4 percent, its steepest increase since November 2008 and the highest level on record. Russia’s Micex advanced for a second day, rising 0.3 percent and benchmark gauges in Turkey, Poland and South Africa added at least 0.5 percent….”
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