Emerging-Market Stocks, Currencies Gain on Earnings, Growth

July 14 (Bloomberg) -- Emerging-market stocks rose for a fifth day and currencies strengthened after Intel Corp.’s earnings and Singapore’s growth forecast added to optimism the global economic recovery will be sustained.

The MSCI Emerging Markets Index climbed 0.8 percent to 964.9 as of 3:43 p.m. in Singapore, adding to a four-day, 2.9 percent advance and is set for the highest close since June 22. Benchmark stock indexes added more than 1 percent in Taiwan, South Korea, the Philippines and Hungary.

Technology shares posted the biggest gains, led by Samsung Electronics Co., after Intel reported record sales and topped analyst estimates with its third-quarter forecast. The Singapore dollar reached a three-week high, pacing a rally among developing-nation currencies, after the city-state raised its gross domestic product forecast for a third time this year.

“Intel’s result indicates consumer spending is expanding,” said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $65 billion. “Given Singapore is a highly trade-dependent country, its economic growth signals the global economy is recovering, with trade as a main driver.”

Samsung, Asia’s largest chipmaker, rose 3.5 percent and Hynix Semiconductor Inc. gained 3.4 percent. Overseas investors bought a net 904.7 billion won ($754 million) of shares in companies on South Korea’s Kospi index today, the most this year. Online Marketing Services Provider.

Fund Managers

Investors are increasing the representation of developing- nation stocks in their portfolios, according to a BofA Merrill Lynch Global Research survey of 202 fund managers who together manage $530 billion released yesterday. A net 34 percent of global asset allocators were overweight global emerging markets, compared with 19 percent in May, according to the survey. Almost half of the investors surveyed also said global emerging markets were the area they would most like to overweight in the next 12 months, more than double the reading in May.

Santa Clara, California-based Intel, the first major U.S. technology company to report second-quarter earnings, said third-quarter sales will be about $11.6 billion. Analysts had estimated $10.9 billion on average, according to a Bloomberg survey. The world’s biggest chipmaker also posted second-quarter net income of 51 cents a share, compared with analysts’ estimates of a profit of 43 cents a share. Direct Marketing Services Provider.

Taiwan Semiconductor Manufacturing Co., the world’s largest customized chipmaker, climbed 1.3 percent.

Passenger Numbers

In China, the Shanghai Composite Index rose 0.8 percent. Beiqi Foton Motor Co. climbed 2 percent after saying first-half vehicle sales increased. Air China Ltd. advanced 1.3 percent, pacing gains by carriers, after passenger numbers climbed in the first half.

In Singapore, the economy expanded at a 26 percent annual pace in the second quarter, after a revised 45.9 percent growth in the first quarter that was the fastest since records began in 1975, according to the trade ministry. Growth this year will rise between 13 percent and 15 percent, compared with an earlier forecast of as much as 9 percent, the ministry also said. Media Marketing Agency.

The Singapore dollar reached S$1.3733, the highest level since June 21. The ringgit also climbed to a three-week high and South Korea’s won strengthened for the first time in three days.