|Michael Patterson and Ian Sayson|
The MSCI Emerging Markets Index advanced 3 percent to 1,011.28 at
The Fed announced a third round of asset purchases yesterday, pledging for the first time that it will buy bonds until the economy recovers and keep the benchmark interest rate near zero until at least the middle of 2015. The "powerful" stimulus may spark a rally in emerging-market assets similar to the first quarter, when the
"Stimulating U.S. jobs growth and economic expansion will provide the global economy with a strong boost that will benefit emerging markets," said
The Fed's open-ended asset purchases follow the
The 21 countries in the
"We will have to see further down the road how effective these measures are, but for now it's a good signal that authorities in the U.S.,
The Hang Seng China Enterprises Index led gains among Asian emerging-market equity gauges today, jumping 3.7 percent. The Micex was poised for its biggest advance since October, while
The extra yield investors demand to own emerging-market dollar bonds over U.S. Treasuries dropped 10 basis points, or 0.10 percentage point, according to
The cost to insure Egyptian government debt against non- payment dropped to a one-year low as the nation's main Islamist groups sought to ratchet down tensions with the U.S.
"With the powerful policy signal sent by the Fed, we believe that the risk-on lights are going to flash green for quite some time ahead,"
Global equity funds attracted
All 10 industry groups in the
Crude futures advanced as much as 2.2 percent in
The ruble strengthened for a ninth day, advancing 1.8 percent versus the U.S. currency in the longest stretch of gains since January.
"Bets that risk-on trade will increase are driving brokerage stocks up,"
The BSE India Sensitive Index climbed 2.5 percent to the highest level since
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