Emerging market stocks extend rebound

Emerging-market stocks rose for a second day on speculation that China will boost infrastructure spending and European leaders will take action to support growth. The MSCI Emerging Markets Index advanced 0.7 per cent to 920.13 in London, extending Monday's 0.8 per cent rebound from the lowest close in five months. The Hang Seng China Enterprises Index of Chinese stocks listed in Hong Kong rose 1.2 per cent, the most since April 30. The BUX Index gained for a third day in Budapest, its longest rising streak in almost ten weeks. The rand depreciated 0.4 per cent against the dollar, while the lira slid 0.2 per cent. The rouble was little changed. Sentiment among investors in emerging-market equities has reached "panic" levels, Citigroup Inc. said.The developing-nations gauge has slid 15 per cent from its year-high on March 2. Emerging-market stocks have advanced an average 7.5 per cent in a six-month period and 23 per cent in a year on past occasions when Citigroup's "Whether Vane" has been at such levels, New- York-based analysts Geoffrey Dennis, Howard Park and Christina Wood wrote in a note.