Emerging stocks climb most in 5 months on China exports

By Christine Harvey and Jason Webb

Emerging-market stocks rose to the highest level in two weeks after better-than-estimated Chinese trade and lending figures outweighed doubt that Spain’s bailout plan will fail to contain the debt crisis.

The MSCI Emerging Markets Index (MXEF) rose 1.1 percent to 914.87 at the close in New York, the highest level since May 29. PT United Tractors (UNTR), Indonesia’s biggest heavy equipment seller, rose 6 percent to lead the index’s advance, while China Cosco Holdings Co. (1919), the world’s largest operator of dry-bulk ships, surged the most in six months. Brazil’s Bovespa fell 0.8 percent as OGX Petroleo e Gas Participacoes SA tumbled.

Chinese exports climbed at more than double the pace economists predicted in May as new lending of 793.2 billion yuan ($125 billion) topped estimates, and inflation fell to a two- year low, according to government reports. While Spain’s weekend request for as much as 100 billion euros ($125 billion) to bail out banks fueled early gains, optimism over the plan faded as some investors said it won’t halt the European debt crisis.

“There was a great deal of enthusiasm over the weekend for the news that Spain would reach out to its EU colleagues to request a 100-billion-euro package,” Benoit Anne, head oNike KD