Emerging stocks unchanged on speculations

Emerging-market stocks were little changed as gains among Indian and Brazilian shares were offset by speculation that the rally for South Korea and Taiwan equities may have been excessive.The BSE India Sensitive Index advanced amid speculation the nations central bank may take measures to ease a cash crunch.Bloomberg News reported on Monday that Brazils Bovespa gained after economists cut their 2012 inflation forecast for a fourth straight week.South Koreas Kospi retreated from last weeks 1.5 per cent gain as shipbuilders fell. Taiwans Taiex Index slipped after rallying to 4.8 per cent last week.The MSCI Emerging Markets Index was little changed at 927.68 as it advanced by 2.6 per cent last week, driving valuations of the gauge to 10.1 times estimated earnings amid signs the United States economy was recovering.Reports tomorrow may show home prices in 20 US cities probably declined at a slower pace and consumer confidence improved to a five-month high.With key markets closed for holidays, its hard to make strong bets especially following solid gains last week, a fund manager in Seoul at Samsung Asset Management Company, Mr. Lim Chang Gue, said.Financial markets from Hong Kong to Malaysia, Indonesia, the United Kingdom and the US are closed for holidays. The MSCI emerging-market index has fallen by 19 per cent this year, more than a 7.5 per cent loss in the MSCI World Index of developed nations.Emerging market stocks may rally at least 28 per cent by the end of 2012, according to Citigroup Incorporated, which says current cash positions and equity allocations of investment funds are better indicators of future performance than money flows.Indian equities gained after a jump in the nations money- market rates to a three-year high fueled speculation the central bank will cut lenders reserve requirements for the first time since 2009.ICICI Bank Limited, Indias second-biggest lender, rose by 1.1 percent. Larsen & Toubro Limited, reputed to be the largest engineering company, advanced by 1.8 per cent.Brazilian stocks rose after economists cut their 2012 inflation forecast for a fourth straight week, to 5.33 per cent from 5.39 per cent the week earlier.
Click here to read full news..