Emerging stocks pare loss on China reserve move

Emerging-market stocks advanced, paring a monthly loss, as China cut its reserve requirement for banks to boost the world's second-largest economy as Europe's debt crisis dims the outlook for exports and growth. The MSCI Emerging Markets Index gained 0.3 per cent to 912.02 at 11.16am in London, extending a three-day gain to 3.9 per cent. The gauge slumped 8.4 per cent in November. The Micex Index advanced 1.5 per cent in Moscow, led by energy companies as tension increased between Iran and the West. The FTSE/JSE Africa All Share Index jumped 1 per cent in Johannesburg. The WIG20 Index rose 1.5 per cent in Warsaw after economic growth was higher than forecast. Reserve ratios will decline by 50 basis points effective December 5, the People's Bank of China said in a statement on its website.