Emerging market rally continues

Emerging-market stocks rose for a seventh day, extending a record and completing the longest streak of gains in nine months, on climbing commodity prices and an improved outlook for earnings.

Samsung Electronics, the world's biggest maker of liquid- crystal display panels, led the gain in the Morgan Stanley Capital International emerging markets index after rival LG.Philips LCD reported a loss that was smaller than some analyst estimated.

Russia's state-controlled oil company, Gazprom, and China Petroleum & Chemical Corporation, Asia's biggest oil refiner, gained as crude oil rose above $62 a barrel.

Indexes in China, Turkey, Egypt and Pakistan rose more than 1 per cent. The MSCI Emerging Markets Index rose 3.29, or 0.3 per cent,to 963.62, finishing its longest streak since July 4.

Latin American stocks today fell for the first time in two weeks after the U S Federal Reserve indicated it may have to raise interest rates. Asian and European markets, which closed before the Fed minutes from its March policy setting meeting were released, are likely to decline tomorrow, said Rogerio Chequer at Discovery Fund in South Norwalk, Connecticut.

"The timing of this bodes well for a correction," Chequer, who manages about $500 million of emerging-market assets, said in a telephone interview.

Fed Statement
"Further policy firming might prove necessary to foster lower inflation,'' the Fed said in minutes of the Open Market Committee's March 20-21 meeting, released today in Washington. "But in light of the increased uncertainty about the outlook for both growth and inflation, the committee also agreed that the statement should no longer cite only the possibility of further firming.''

Higher US interest rates lessen the appeal of emerging markets assets. The MSCI Latin American index fell 0.7 per cent from a record to 3267.75.

Crude oil for May delivery rose 12 cents to $62.01 a barrel on the New York Mercantile Exchange. Copper rose to a seven-month high in London as dwindling stockpiles stoked speculation that production will lag behind demand from China, the world's largest user of the metal. Gold, silver, tin and zinc rose in London.

Jiangxi Copper Co., China's largest producer of the metal, jumped 6.5 per cent to HK$11.80 in Hong Kong. Aluminum Corp. of China, the nation's largest producer of that metal, rose 7.5 per cent to HK$9.56 in Hong Kong. Indexes in Brazil, Mexico, Colombia and Peru fell.

Turkish Politics
Turkish stocks climbed 1.7 per cent on speculation a bid for the country's presidency by Prime Minister Recep Tayyip Erdogan won't disrupt the economy. Opposition leaders contend that Erdogan will undermine the country's secular system, stoke tensions with the pro-secular army and hurt the economy.

Erdogan's Justice and Development Party is preparing a promotional campaign to win voters over to the idea of an Erdogan presidency, Hurriyet newspaper reported today.

The Shanghai Stock Exchange Composite Index rose to a record for a eighth day, gaining 50.93, or 1.5 per cent to 3495.22.

The Hang Seng China Enterprises Index rose 1.4 per cent to 10,149.89.