Daily Archives: Sep 20, 2010

Brazil's BovespaLatin American stocks followed bullish global sentiment today ahead of the Fed’s policy meeting on Tuesday. Metals producers and homebuilders gained in Mexico and Brazil, and Goldman Sachs predicted in a note that Brazil’s Bovespa would gain 16 per cent to hit a record 78,000 by the end of this year.

“Timing for a rally seems propitious because obstacles that have blocked markets are being removed, while earnings are robust and estimates we think will rise further,” wrote Goldman Sachs analysts Stephen Graham and Andre Rezende. “After 11 months of flattish trading, late 2010/early 2011 is shaping up to be an especially robust chapter of the story.” Read more

Turkish and Russian stocks rose moderately on Tuesday, matching gains in western European indices. Lukoil shares hit a seven-week high as the price of crude recovered.

After its recent low, the Russian rouble was stable against the dollar, while other currencies, including the Hungarian forint, hit one-month highs. Read more

Vietnam’s prime minster Nguyen Tan Dung’s pet project to turn state run companies into chaebol-esque conglomerates seems to have been foiled yet again. Vietnamese police arrested another senior executive at the troubled state-owned shipbuilding conglomerate Vinashin over the weekend, the sixth in the last two months.

The saga comes as Vinashin is grappling to manage its heavy debt burden and it is a source of worry for foreign investors who hold hundreds of millions of dollars of that debt. Read more

By Alfred Liu of mergermarket

Chemicals group Sinochem may be preparing a massive bid for PotashCorp, but Chinese companies aren’t only interested in Canada’s biggest companies. On Friday, China’s largest producer of nickel and cobalt, Jinchuan, agreed to buy a Canadian metals explorer for a fraction of the price that Potash could fetch.

That shows the many levels at which Chinese companies are expanding – thanks to their new-found wealth, their keenness to secure raw materials and technology, and the government’s “going out” policy, which encourages domestic players to push overseas. Read more

* Mining code troubles South Africa investors

* Bharti enters mobile handset business

* China’s King Long in Arriva tie-up

* Malaysian bond boost for renminbi

* No repeat of Japan’s mistake: Chinese official Read more

Indian and Philippine stocks extended their all-time highs on Monday – adding over 1.5 per cent, on continued optimism about domestic growth. Chinese stocks were sluggish, however, ahead of the country’s autumn holiday.

Asian currencies were mainly flat against the dollar, with speculation that Asian banks will intervene to protect exporters. Thailand and Taiwan both released better than expected export data. Read more

The Thai baht has been on a roll this year, and remains near its highest level in 13 years against the dollar.

Today’s export figures should increase the momentum. They show that the strong currency hasn’t hit exports – in fact, exports rose sharply in August, led by cars and electronics, and July’s trade deficit flipped into a surplus. Now the central bank must respond. Read more

From the FT:

From elsewhere:

* Mining code troubles South Africa investors

* Bharti enters mobile handset business

* China’s King Long in Arriva tie-up

* Malaysian bond boost for renminbi

* No repeat of Japan’s mistake: Chinese official Read more

140 world leaders are in New York to brainstorm at the MDG summit, and the focus of attention on the eve of the event has been broadband in developing countries. The digital revolution has already put wind in the sails of development, most notably as mobile phones have ended the isolation of billions of people living in rural areas that are now connected by telephony. Read more

Fund File appears every Monday on beyondbrics, offering views on emerging markets from the fund management industry and FTfm.

South Korea’s success over the last few decades has been so dramatic that the country does not even appear in some emerging market groupings. It is just too developed. And, in spite of a slow past couple of years, it looks as though the “Miracle on the Han River” is back. The IMF recently raised its 2010 growth forecast for South Korea to 6.1 per cent.

Fund managers looking to participate in that growth might be cheered by another statistic: by 2050 one-third of the Korean population is forecast to be over the age of 65Read more