Fear of debt contagion lessens as emerging stocks rise

Individuals interested in learning how to trade have seen the troubled European market impact on global share prices in recent weeks, but this morning emerging market stocks rose, arresting the longest fall since 2009.

Speculation that China will ease its lending restrictions has revived the market and increased optimism, Bloomberg reports.

Mark Konyn, chief executive officer of RCM Asia Pacific, told the news provider: "Partly what we're seeing today is that investors have already discounted a significant part of the risk. And then we're seeing some possibility of liberalisation in China."

Meanwhile, the MCSI Emerging Markets Index jumped 0.2 per cent to 886.98 points at 07.59 GMT, after falling 9.4 per cent over the past seven days.

The Hang Sang China Enterprises Index climbed one per cent and Taiwan's Taiex Index rose 0.9 per cent.

However, renewed optimism in the emergent markets has not yet been mirrored by conditions in the US, where the Dow Jones Industrial Average slumped by 1.1 per cent yesterday to reach 11,365.06 points.

Posted by Clive Arneil