Europe rides rebound in risk appetite, emerging markets shine
By Marc Jones
LONDON (Reuters) - Revived appetite for emerging markets helped Asian stocks hit a near six-month high on Wednesday, driving more modest gains in Europe and other developed markets, where future stimulus looks less clear-cut.
It was an easier start for European bourses after a difficult couple of days during which tensions have escalated in Ukraine and the European Central Bank has tempered expectations of a new asset-buying program.
The pan-regional FTSEurofirst 300 .FTEU3 rose 0.6 percent as the main markets in London .FTSE, Paris .FCHI and Frankfurt .GDAXI helped claw back some of the 1.2 percent the FTSEurofirst has lost so far this week.
In the currency market, the euro and sterling both remained firm as the dollar retook a bit of the ground it has lost against a rallying yen in recent days.
The International Monetary Fund predicted on Tuesday the global recovery would strengthen this year and next as output in richer nations picked up.
But it was emerging markets that got the thumbs-up from investors again on Wednesday.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced almost 1 percent .MIAPJ0000PUS to its highest level since late October, helped by another EM outperformance .MSCIEF, both in stocks and currencies.
Talk that China could be readying new economic support measures has helped investors largely put aside worries about geopolitics and slowing U.S. stimulus that fuelled a turbulent start to the year for emerging assets. Continued...