Emerging-Market Stocks Soar on Obama Plan, Wiping Out 2009 Loss

Emerging-market stocks climbed the most in nearly two weeks, erasing losses for 2009, on speculation the Obama administration’s plan to rid banks of toxic assets will help spur global economic growth.

ICICI Bank Ltd., India’s second-largest lender, jumped 6.1 percent as the U.S. prepared to announce details of a plan today to buy as much as $1 trillion of troubled assets. OAO Lukoil, Russia’s second-biggest oil producer, rose to the highest since October as crude gained and Citigroup Inc. advised clients to buy the nation’s stocks. China shares posted a sixth day of gains, the longest winning stretch in more than 17 months as SAIC Motor Co. rose 5.4 percent.

The MSCI Emerging Markets Index added 3.3 percent to 571.27 at 8:51 a.m. in London, putting the index on course for the first 2009 gain since Jan. 9. The benchmark for equities in 23 developing nations tumbled 54 percent last year and lost as much as 16 percent this year on concern the first global recession since World War II would erode earnings.

“Stocks are building a base for the next bull market,” Mark Mobius, who oversees about $20 billion of emerging-market assets at San Mateo, California-based Templeton Asset Management Ltd., said in an interview on Bloomberg Television today. “We’re finding bargains in every country. You have to be careful not to miss the opportunity.”

The MSCI benchmark has rallied 14 percent in March, headed for the biggest monthly gain since December 1993, on speculation China’s 4 trillion-yuan ($586 billion) stimulus plan will boost demand for commodities and as the biggest U.S. banks said they were profitable in January and February following $1.2 trillion in writedowns worldwide.

U.S. Treasury Secretary Timothy Geithner is expected to unveil the Public Private Investment Program today, expanding the $700 billion rescue of the financial system by relying on private investors to buy the troubled assets clogging banks’ balance sheets.

To contact the reporters on this story: Michael Patterson in London at mpatterson10@bloomberg.net;

ING Chief Asks ‘Top 200’ Executives to Return Bonuses

March 23 (Bloomberg) -- ING Groep NV, the first Dutch bank to tap a government rescue package, asked its “top 200” employees and their teams to return last year’s bonuses.

The bank also deferred 2009 variable cash compensation for all workers until a new policy is established next year, the Amsterdam-based financial-services company said in a message sent to employees and obtained by Bloomberg News today.

“Given the continuing public scrutiny of variable pay practices in our industry, ING is moving to align its variable compensation practices with the new reality,” it said.

Banks are calling on executives to forfeit bonuses amid growing public criticism as taxpayers bail out lenders. Societe Generale SA, France’s third-largest bank, said yesterday senior executives would return their stock options in response to public “indignation.” The Paris-based bank received 1.7 billion euros ($2.3 billion) in state aid in December.

ING, which received a 10 billion-euro ($13.6 billion) lifeline in October and is transferring the risk on most Alt-A mortgage assets to the government, paid 300 million euros in bonuses for 2008.

“In this environment, we must show how seriously we take this matter,” Jan Hommen, chief executive officer designate, said in the message. “Most important, we must put this issue behind us so we can focus on what matters most, our customers and how we take the company forward.”

ING rose 15 percent to 5 euros as of 11:15 a.m. in Amsterdam. That values the financial-services company at 10.3 billion euros.

The Dutch newspaper De Volkskrant earlier reported ING asked its top 1,200 employees to return their 2008 bonuses.