EMERGING MARKETS-Stocks at 2-month high on China; forint recovers

Emerging stocks leapt 2 percent to their highest in two months on Tuesday as better-than-expected Chinese growth numbers and a record rise in German economic sentiment revived risk appetite.

South Africa’s All-share index hit an all-time high while Hungary’s forint reversed a two-session loss, despite expectations that the European Commission will soon launch legal action against Budapest over its policies to curb the independence of its media, judiciary and central bank.

Data showing China’s gross domestic product growing nearly 9 percent in the fourth quarter of 2011, overshadowed news of Standard and Poor’s downgrading the credit rating of the euro zone’s rescue fund late on Monday – a step S&P said was all but inevitable after it cut the ratings of nine euro zone member states last Friday.

Hopes that the global economy can avoid a prolonged downturn were reinforced by a monthly poll of German analyst and investor sentiment which showed the largest single monthly increase since the survey started in 1991.

From: Reuters Africa