Chinese data triggers longest EM stock rally in 14 months

Emerging market stocks rose for the ninth day in a row today on increased investor confidence, driven by positive data from China and the US.

The data shows the Chinese service industry growing at the fastest pace in four months in December, according to Bloomberg. Data from the US, meanwhile, revealed a larger than expected increase in factory output. Emerging market equities saw their longest rally in more than 14 months, signalling a rise in investor risk appetite. The MSCI Emerging Markets index gained 2.1% yesterday, taking it to a 10-month high, while Asia's leading indices were well into positive territory overnight.    The FTSE 100 dropped back after a strong rally yesterday following the US' fiscal cliff ag...