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(Bloomberg) — Emerging-market stocks rose to the highest in three months and currencies gained after U.S. Federal Reserve Chair Janet Yellen signaled that an interest-rate increase isn’t imminent. Chinese shares retreated following a weeklong holiday. Steelmaker Usinas Siderurgicas de Minas Gerais SA gained for a second day in Sao Paulo even as the Ibovespa Index decreased. Taiwan Semiconductor Manufacturing Co. rallied to a record in Taipei and Daewoo Engineering & Construction Co. surged to a four-month high in Seoul. Russia’s ruble halted a three-day drop while Indonesia’s JCI index rose for a sixth day. The Shanghai Composite Index slipped 0.6 percent.
The MSCI Emerging Markets Index climbed 0.5 percent to 992.80 in New York Wednesday, the highest close since Nov. 28. Yellen said on Tuesday a rate increase was unlikely for “at least the next couple” of meetings, fueling demand for developing-nation assets. Euro-area finance ministers agreed to extend a bailout program for Greece, giving the euro area’s most indebted state time to convince its international creditors it will deliver. “The Fed indicated it will be patient with interest rates which helps EM currencies,” Hertta Alava, the head of emerging markets at FIM Asset Management Ltd. in Helsinki, said by e- mail. “The environment is supportive for equities. The outlook for the next couple of months at least is good.” The developing-nation index has gained 3.8 percent this year and trades at 11.9 times projected 12-month earnings, the most expensive level since November 2010, data compiled by Bloomberg show. The MSCI World Index is up 3.9 percent in 2015 and is valued at a multiple of 16.8.

Ruble Gains

All but three of 10 industry groups in the developing- country gauge rose, led by technology and utility stocks. Taiwan Semiconductor, the world’s largest contract manufacturer of chips, climbed 2.3 percent to the highest since 1994. The ruble climbed 2.4 percent, the first advance in four days, as Russian companies sought to make local tax payment deadlines and Brent crude gained in London.
Russia’s Micex Index declined 1.5 percent, falling for a fourth day, as OAO Gazprom slipped 2.8 percent. The state- controlled company, which provides about 30 percent of the European Union’s gas, has said it will cut off supplies to Ukraine when prepaid volumes run out. Shares of United Co. Rusal advanced 2.7 percent in Moscow after the world’s largest aluminum producer reported its first full-year profit since 2011. Usinas Siderurgicas, known as Usiminas, added 4.1 percent, extending its February advance to 21 percent. The Ibovespa retreated 0.1 percent, paring a drop of as much as 1.6 percent after Moody’s Investors Service reduced the credit rating of state-controlled Petroleo Brasileiro SA to junk amid a corruption probe. Petrobras sank 4.9 percent.

Short Sellers

Daewoo Engineering jumped 7.7 percent in Seoul to the highest since Oct. 6 as the Kospi Index added 0.7 percent on a sixth day of advances, the longest winning streak since April. The Shanghai Composite Index halted a seven-day gain as mainland trading resumed. Short sellers are growing more convinced that China’s world-beating equity rally is poised to end. The Hang Seng China Enterprises Index rose 0.2 percent. The Chinese manufacturing purchasing managers’ index for February from HSBC Holdings Plc and Markit Economics came in at 50.1, unexpectedly rising from 49.7 in January after economists projected a reading of 49.5. The premium investors demand to hold emerging-market debt rather than U.S. Treasuries narrowed three basis points to 366, according to JPMorgan Chase & Co. indexes.

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net To contact the editors responsible for this story: Daliah Merzaban at dmerzaban@bloomberg.net Zahra Hankir, Marie-France Han