Russian stocks gained after signals from Japan and the U.S. that they will pursue monetary stimulus to bolster their economies.
The Micex Index of 30 shares rose 0.1 percent to 1,502.65 by the 6:45 p.m. close in Moscow, paring an earlier gain of as much as 1 percent and taking its weekly advance to 0.4 percent. OAO Transneft, Russia’s oil pipeline monopoly, surged 5.4 percent. OAO Aeroflot, the country’s biggest airline, advanced 3.2 percent. The dollar-denominated RTS Index slumped 0.5 percent to 1,612.74.
Federal Reserve Vice Chairman Janet Yellen and William C. Dudley, president of the Federal Reserve Bank of New York, endorsed the view that borrowing costs will stay near zero through 2014. The Bank of Japan “will pursue powerful easing” to overcome deflation, according to Governor Masaaki Shirakawa.
“The mood in global markets has improved markedly in recent days as central banks from the U.S., European Union and Japan reaffirm their commitment to monetary easing in order to ensure that economic growth remains positive,” Chris Weafer, chief strategist at Troika Dialog in Moscow, wrote in an e- mailed report today.
Russian stocks rallied 8.2 percent in the first three months of the year, the biggest quarterly gain in more than a year on signs the global economy recovery is spurring demand for commodities. The gauge trades at 5.5 times analysts’ earnings estimates for member companies, below the 10.5 ratio for the MSCI Emerging Markets Index.
To contact the reporter on this story: Jason Corcoran in Moscow at email@example.com
To contact the editor responsible for this story: Frank Connelly at firstname.lastname@example.org