Emerging stocks head for biggest one-day gain since March

LONDON, Nov 11 (Reuters) – Emerging market stocks headed for their largest one-day gain since March on Friday, after US inflation data softened expectations for more big rate hikes from the Federal Reserve and China eased some COVID restrictions.

The MSCI emerging market equity index was last up 4.7%, having hit its highest since September 21.

The benchmark has a heavy weighting towards China, where mainland stocks rose 2.8% and Hong Kong’s main index was up more than 7.6% – its largest daily gain since March 16. Chinese authorities eased COVID-19 rules, including shortening quarantines and removing a penalty for airlines for bringing in too many cases.

The index is up almost 10% this month and is headed for the first quarterly gain since the second quarter of 2021. The MSCI EM index has fallen 24.5% since the beginning of the year.

Foreign investors added USD 9.2 billion to emerging market portfolios last month, with fixed income attracting USD 7.6 billion in the strongest monthly inflows so far this year, according to the Institute of International Finance (IIF) data released this week.

(Reporting by Jorgelina do Rosario; Editing by Amanda Cooper and Alex Richardson)