Intel Forecast, Emerging Market Stocks Advance on Economic Data

Intel Forecast, Emerging Market Stocks Advance on Economic Data : Emerging-market stocks rose the most in 10 months as better-than-expected U.S. economic data and earnings from companies including Intel Corp. and PSA Peugeot Citroen raised confidence in the global economy.

The MSCI Emerging Markets Index rallied 2.4 percent to 1,194.77 as of 11:34 a.m. in New York, the steepest gain since June 21 on an intraday and closing basis. A measure of technology stocks in the MSCI gauge surged 3.7 percent, set to close with the sharpest increase since May 2009. South Korea’s Kospi Index jumped 2.2 percent to a record, while Taiwan’s Taiex Index added 2 percent. India’s Sensitive Index was up 1.8 percent and Brazil’s Bovespa climbed 1.1 percent. Russia’s Micex Index advanced 1.6 percent with higher oil.

Intel, the biggest chipmaker, forecast second-quarter sales higher than analysts predicted. Peugeot Citroen, Europe’s second-biggest carmaker, reported first-quarter revenue that beat estimates. A report from the National Association of Realtors today showed sales of existing U.S. homes rebounded in March, a day after Commerce Department figures showed housing starts rose 7.2 in March compared with February, and European manufacturing unexpectedly quickened in April.

“Solid data from the euro-zone and the U.S., as well as some positive earnings news, have provided strong support” for emerging-market assets, RBC Capital analysts including Nigel Rendell in London wrote in a research report.

Chipmakers

U.S home purchases increased 3.7 percent to a 5.1 million annual rate, exceeding the 5 million median forecast of economists surveyed by Bloomberg News, figures from the National Association of Realtors showed today in Washington.

Hynix Semiconductor Inc., the second-largest computer memory chipmaker, climbed 4.6 percent in Seoul. Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker, rose 2.5 percent. Korea’s Samsung Electronics Co. gained 4.7 percent after agreeing to sell its computer hard-disk drive business.

Intel, the world’s biggest chipmaker, said current quarter revenue will be $12.8 billion, plus or minus $500 million. That compares with the $11.9 billion average of analysts’ projections compiled by Bloomberg.

LG Chem advanced in Seoul, jumping 5.6 percent to its highest close on record. Net income rose to 656.6 billion won ($607 million) in the three months ended March 31 from 517.7 billion won a year earlier, the company said.

Bovespa Gains

The Bovespa stock index advanced for a second day as commodities prices climbed. Iron-ore miner Vale SA and oil company Petroleo Brasileiro SA advanced at least 1.2 percent, following higher metal and crude prices. Cia. Siderurgica Nacional SA gained 2 percent after Rio Tinto Group said in a statement the Brazilian steelmaker accepted its offer to buy CSN’s 19.35 percent stake in Riversdale Mining Ltd.

The Korean won appreciated 0.8 percent against the dollar to its strongest level since September 2008. The ruble rose 0.8 percent against the U.S. currency and the rand strengthened 0.7 percent. The Turkish lira gained 0.7 percent.

Crude oil for June delivery jumped as much as 2.8 percent to $111.20 a barrel in New York.

Turkey’s ISE National 100 Index added 0.5 percent. Hungary’s BUX Index rallied 1.7 percent and Poland’s WIG20 gained 1.3 percent, led by copper producer KGHM Polska Miedz SA.

South Africa’s FTSE/JSE Africa All Share Index increased 2.2 percent.

The difference between the yield investors demand from emerging-market bonds and U.S. Treasuries fell seven basis points to 266, according to the JPMorgan Chase EMBI+ Index.

The Markit iTraxx SovX CEEMEA Index of eastern European, Middle East and Africa credit-default swaps eased two basis points to 193.source www.businessweek.com... For the latest updates PRESS CTR + D or visit Stock Market news Today

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