LONDON, April 16 (Reuters) - Emerging market stocks rose to near seven-month highs on Thursday, riding momentum from a global equities surge and data from China showing investment into the country is holding up against slowing growth.
The MSCI emerging stocks index was up 1.2 percent, its highest since last September, while the Asian ex-Japan benchmark was 1.3 percent higher.
Analysts attributed much of the stock market strength to the knock-on effect of central bank monetary stimulus and bond buying programmes from key central banks such as the euro zone and Japan, known as quantitative easing (QE).
“Emerging market equities are on a tear which is a bit surprising given the weak growth outlook that the International Monetary Fund has highlighted, but QE-fueled capital flows are finding their way into stocks not just in developed markets but also emerging markets,” said Per Hammarlund, chief emerging markets strategist at SEB in Stockholm.
Shanghai stocks leapt 2.7 percent to new seven-year highs after data showed foreign direct investment into China rose 2.2 percent in March from a year earlier, indicating investors remain undeterred by slowing Chinese growth.
Elsewhere, a recovering oil market which had lifted the rouble in early trading, turned negative to wipe out gains on the Russian currency
Turkey’s lira slipped 0.3 percent against the dollar, trading close to the record lows reached this week as investors stayed jittery ahead of parliamentary elections due in June.
Poland’s zloty firmed against the euro, approaching recent 3-1/2 year highs after the central bank said on Wednesday it had ended a rate-cutting cycle on Wednesday.
Ukrainian sovereign dollar bonds weakened, with the issue maturing in 2022 declining 0.4 cents. Earlier the finance ministry said state-owned bank Ukreximbank and Oschadbank would would require only a debt maturity extension rather than a principal or coupon reduction.
Ukrexim’s dollar bond maturing later this month rose 1.2 cents to trade at 64 cents
The cost of insuring exposure to Ukraine debt fell after the announcement with five-year credit default swaps falling 124 basis points to 3,997 bps, according to financial data provider Markit.
For GRAPHIC on emerging market FX performance 2015, see link.reuters.com/jus35t
For GRAPHIC on MSCI emerging index performance 2015, see link.reuters.com/weh36s
For GRAPHIC on MSCI emerging Europe performance 2015, see link.reuters.com/jun28s
For GRAPHIC on MSCI frontier index performance 2015, see link.reuters.com/zyh97s
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see ) (Additional reporting by Sujata Rao Editing by Jeremy Gaunt)