JAKARTA, June 15 — Developing-nation stocks ended a four-day slide as Chinese shares led a rebound in Asia and currencies held declines before the Federal Reserve’s policy review.

Information technology companies led gains in the MSCI Emerging Markets Index, with eight of its 10 industry groups advancing. China’s stocks reversed an earlier loss to jump the most in two weeks, spurring speculation state-backed funds may be supporting the market after MSCI Inc. refused to add the nation’s domestic equities to benchmark gauges. The yuan strengthened along with Russia’s rouble, while the Philippine peso fell.

“The decision by MSCI not to include Chinese A-shares was a blessing for other Asian markets as it would have shifted investors’ portfolios,” said Jeffrosenberg Tan, an associate director at PT Sinarmas Securities in Jakarta. “Brexit and the Fed meeting were the main factors over the past few days. Volatility is heightening up, and investors should closely monitor these developments.”

Global risks

More than US$2 trillion (RM8.2 trillion) was wiped off the value of global equities in the past week as a slew of polls indicated the UK will elect to leave the European Union in a June 23 referendum. The vote is spurring volatility before central bank policy announcements in the US today, and Japan and the UK tomorrow. While most economists predict no policy changes, investors will closely watch the decisions for clues on future direction.

“The Fed is unlikely to hike in June, but we will be watching the forward guidance,” said Irene Cheung, a foreign-exchange strategist in Singapore at Australia & New Zealand Banking Group Ltd.

The MSCI Emerging Markets Index of shares rose 0.3 per cent to 805.81 as of 9:02 am in London, ending a four-day decline of 4.7 per cent. Tencent Holdings Ltd jumped 2.8 per cent in Hong Kong, providing the biggest boost to the measure, followed by a 2.4 per cent advance in Samsung Electronics Co.

China, Pakistan

The Shanghai Composite Index rose 1.6 per cent after falling as much as 1.1 per cent. The Hang Seng China Enterprises Index added 0.3 per cent in Hong Kong. China’s domestic equities were denied entry into MSCI benchmarks for a third time, with the index compiler saying policy makers need to make additional improvements to the accessibility of the A-share market.

Pakistan’s Karachi Stock Exchange KSE100 Index surged as much as 2.9 per cent to a record after the nation’s equities were upgraded to emerging-market status. Asia’s best-performing share market of 2016 may attract about US$220 million of inflows, JPMorgan Chase & Co. said in a note following MSCI’s decision late Tuesday in New York.

BMA Capital Management Ltd sees Pakistan luring US$300 million to US$400 million in the first year, while EFG Hermes Holding SAE said last month an upgrade may attract around US$475 million by mid-2017.

Equity benchmarks in South Africa, Turkey the Philippines and India advanced, while those in Indonesia and South Korea retreated.

The MSCI Emerging Markets Currency Index was little changed following a 1.4 per cent slide during the previous four days. The Philippine peso weakened 0.3 per cent, the rouble gained 0.3 per cent and Turkey’s lira advanced 0.2 per cent. Poland’s zloty jumped 0.4 per cent.

Malaysia’s ringgit strengthened 0.2 per cent after weakening 1.4 per cent in the previous three days, and the yuan climbed 0.1 per cent. — Bloomberg