Emerging stocks gain as Turkey’s Lira rallies on rate increa
• 30 Jan 2014
Turkish 5 lira banknotes are seen in this illustration picture taken in Istanbul (REUTERS)
Turkey more than doubled interest rates to stem capital outflows in a decision announced
Bloomberg - <span 1.6em;"="">Emerging-market stocks gained the most in seven weeks and the lira rose for a third day after Turkey’s emergency interest-rate increase spurred optimism that central banks will take steps to stem capital outflows.
The MSCI Emerging Markets Index climbed 1 percent to 943.24 at 10:09 a.m. in London, the biggest advance since Dec. 9. The lira appreciated 1.7 percent to 2.2146 to the dollar, taking its three-day jump to 5.2 percent, the most since April 2009. The currency pared a gain of as much as 4 percent earlier, while South Africa’s rand lost 0.8 percent. Benchmark equity gauges in Indonesia, Russia and South Korea added at least 1.1 percent.