(Bloomberg) — Emerging-market stocks advanced to a six-month high as Chinese developers rallied and Philippine shares headed for a bull market. Indonesia’s rupiah led developing-nation currencies higher.
China Overseas Land & Investment Ltd. and Greentown China Holdings Ltd. jumped at least 4.9 percent in Hong Kong after the nation’s central bank asked lenders to expedite home loans. Ayala Land Inc. surged to an 11-month high in Manila as the Philippine Stock Exchange Index climbed more than 20 percent from its August low.
South Korean stocks jumped 1.4 percent as the won reversed earlier gains amid speculation the authorities intervened. The rupiah strengthened the most since March. Indian equities retreated from a record.
The MSCI Emerging Markets Index added 0.7 percent to 1,029.80 as of 2:25 p.m. in Hong Kong. The People’s Bank of China called on the nation’s biggest lenders to accelerate mortgage approvals as Premier Li Keqiang seeks to ease a slowdown in the world’s second-largest economy. The Philippine stock index has emerged as Asia’s best performer this year after winning a credit-ratings upgrade from Standard & Poor’s.
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The Chinese central bank’s move is “a sign of easing in the property sector and we need to see more follow-up measures such as the loosening of purchase restrictions to fuel a broad- based rally for stocks,” said Wu Kan, a fund manager at Shanghai-based Dragon Life, which oversees about $3.3 billion.
The developing-nation gauge has increased 2.6 percent this year and trades at 10.7 times its 12-month projected earnings. The MSCI World Index of developed-nation shares has climbed 2.3 percent in 2014 and is valued at a multiple of 14.9.
All 10 industry groups in the developing-nation gauge advanced, led by financial shares and utilities. A measure of technology stocks was poised to reach an all-time high.
China Overseas rallied the most since March 21 and Greentown headed for its steepest increase in a month. The central bank’s request to improve lending efficiency comes as an economic slump worsens, with unexpected decelerations in industrial output and investment growth. The Hang Seng China Enterprise Index of mainland companies listed in Hong Kong surged 1.8 percent, poised for the largest advance since March 24. The Philippine Stock Exchange Index added 0.6 percent, taking its gains this year to more than 17 percent, amid speculation that improving public finances will help extend the nation’s best stretch of economic expansion since the 1950s. Ayala Land rose 2.8 percent today.