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London - Emerging-market currencies advanced, led by Russia’s rouble, and shares in the Middle East climbed amid speculation Saudi Arabia and Venezuela will cooperate on stabilizing crude prices.
The rouble strengthened 1% against the dollar after sliding 2.6% last week. The Bloomberg GCC 200 Index of shares in the oil-exporting Gulf Cooperation Council added 0.8% as stocks in Dubai rallied 2.1%. Oil advanced toward $35 a barrel in London after Saudi Arabian Oil Minister Ali al-Naimi met with his Venezuelan counterpart on Sunday in Riyadh.
Most Asian markets are closed on Monday for lunar New Year holidays.
A gauge tracking 20 developing-nation currencies increased 0.2% by 8:40 a.m. in London. The index has strengthened for the past three weeks as oil climbed back above $30 a barrel after dropping to a 12-year low in January, largely on bets energy-exporting nations will take steps to shore up the market.
The MSCI Emerging Markets Index was little changed as five of 10 industry groups gained, led by material and energy stocks. Companies on the gauge are trading at an average valuation of 10.9 times projected 12-month earnings after a 6.9% decline this year. That compares with a multiple of 14.7 for the MSCI World Index of advanced-nation shares, which has retreated 8.3% this year.
Brent increased 1.2% to $34.46 a barrel, trimming this year’s loss to 7.7%. The declines were largely spurred by concern that Iran’s effort to boost exports after the removal of sanctions and brimming US crude stockpiles will flood the market with more supply.
Bonds in emerging Europe climbed, with yields on 10-year Hungarian notes falling two basis points to 3.44% and the rate on similar-maturity Polish debt falling three basis points to 3.09%.
