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Russian Stocks Gain With Asian Shares on Ukraine Accord

April 18, 2014

Moscow (Apr 18)  Russian shares climbed the most in three weeks and Asian stocks advanced after talks in Geneva produced an accord aimed at easing the conflict in Ukraine. Rubber slid to the lowest since 2009.

Russia’s Micex Index (INDEXCF) increased 2.2 percent at 3 p.m. in Moscow, and the Ukrainian Equities Index rose 0.9 percent. The MSCI Asia Pacific Index added 0.3 percent. The yield on Russia’s February 2027 bond slid 18 basis points to 8.99 percent, while the ruble retreated after its biggest gain this month yesterday. Rubber futures lost 4 percent. Financial markets in the U.S., U.K., Germany, Hong Kong and Australia are among those closed for a holiday.

Four-way talks on the crisis in Ukraine ended with an agreement aimed at taking the first steps toward de-escalating the conflict after Russian President Vladimir Putin said he hopes he won’t have to send in troops. U.S. Secretary of State John Kerry said Russia must start implementing the deal within days or face additional sanctions.

“Markets are rising because it looks like Russia and the U.S. are willing to agree on steps to settle the situation in Ukraine,” Bruce Bower, a partner at Verno Capital in Moscow, which manages $550 million in assets, said by e-mail.

The Micex had the biggest intraday gain since March 26. The ruble slid 0.3 percent to 35.5625 per dollar after jumping 1.5 percent yesterday. Ukraine’s hryvnia declined 1.3 percent to 11.30 against the dollar, paring this week’s rally to 12 percent, the biggest advance worldwide.

Geneva Deal

Officials at the meeting in Geneva called for illegal groups in Ukraine to be disarmed, seized buildings to be returned to their owners and occupied public places to be vacated. They also said an amnesty will be granted to protesters.

“A calming of the situation in the Ukraine is positive for stocks,” said Juichi Wako, a Tokyo-based equity strategist at Nomura Holdings Inc., the nation’s biggest brokerage.

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