JAKARTA, Oct 29 — Emerging-market stocks rose for the first time in four days as Samsung Electronics Co led a surge in technology shares. Malaysia’s ringgit climbed to the highest level in four months amid deficit reduction measures.

The MSCI Emerging Markets Index added 0.6 per cent to 1,033.33 at 1:13pm in New York. Samsung, the world’s biggest seller of smartphones and TVs, gained 2.3 per cent after two brokerages raised their share-price estimates. Petroleo Brasileiro SA climbed to the highest level in four months after the Brazilian state-run energy company said it’s asking the government to raise local fuel prices to international levels. The ringgit advanced after Prime Minister Najib Razak announced a goods and services tax to help cut the fiscal deficit.

Nine out of 10 groups in the measure for developing-nation stocks gained today, led by a 1.4 per cent advance in technology companies. The industry, which surged to the highest level on record last week, is also driving gains in the broader emerging- market gauge this month. Samsung is introducing software to help share content across devices, inviting developers to create more applications for its products.

The rally in technology shares “looks justified to me for the companies with the right business model and growth prospects,” said Michael Ganske, who helps manage US$8.5 billion (RM26.7 billion) of developing-nation fixed-income and currencies as the head of emerging markets at Rogge Global Partners Plc in London.

The gauge for developing nations has climbed 4.6 per cent in October, poised for a second monthly advance. It trades at 10.7 times projected earnings, compared with the valuation of 14.4 for the MSCI World Index.

Emerging ETF

The iShares MSCI Emerging Markets Index exchange-traded fund advanced 0.6 per cent to US$42.99. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, increased 0.9 per cent to 21.19.

Global investors are taking inordinate risks with emerging- market equities, and are “egregiously overweight” on consumer, Internet, telecommunications names, Bank of America Corp’s Merrill Lynch said in an e-mailed note.

Brazil’s Ibovespa gained for the first time in four days as Petrobras jumped 6.8 per cent. Chief Executive Officer Maria das Gracas Foster said in an October 25 statement she’s seeking a fuel policy that brings local prices more into line with global levels.

Russian stocks rose to the highest level in a week as OAO Magnit, the nation’s largest retailer, posted record quarterly profitability after negotiating better terms with suppliers.

Price estimates

Samsung drove gains in the Kospi Index after Korea Investment increased its share-price estimate, saying third- quarter earnings showed competitiveness in the chip and phone industries. HI Investment also raised its stock forecast.

Most Chinese stocks fell as disappointing earnings at liquor and health-care companies offset gains for energy shares. Wuliangye Yibin Co, the nation’s second-largest liquor maker, and Yunnan Baiyao Group Co, a producer of Chinese medicine, slid at least 6.8 per cent after reporting results.

The S&P BSE Sensex lost 0.6 per cent, dropping for a fifth day, ahead of the central bank’s policy meeting tomorrow. Reserve Bank of India Governor Raghuram Rajan, who vowed to quell price pressures when he took over at the central bank in September, will boost the repurchase rate by 25 basis points to 7.75 per cent, 20 of 24 analysts said in a Bloomberg survey. State Bank of India fell for the first time in seven days.

Ringgit climbs

Malaysia’s ringgit rose to the highest level since June. The government plans to introduce a 6 per cent GST rate in April 2015 and is seeking to shrink the shortfall between revenue and spending to 3.5 per cent of gross domestic product next year from 4 per cent in 2013, Najib said in his annual budget on October 25.

Egyptian stocks slid the most since August on concern the trial of former President Mohamed Mursi will trigger the return of political instability and after the benchmark jumped to the highest level in more than two years. Luxury property company Palm Hills Developments SAE tumbled 5.2 per cent.

The premium investors demand to own emerging-market debt over US Treasuries fell one basis point, or 0.01 percentage point, to 314 basis points, according to JPMorgan Chase & Co. — Bloomberg