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Chinese property shares rally on stimulus hopes

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China industrial profits fall in March

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Pakistani shares hit record high ahead of cenbank decision

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EM stocks up 0.7%; currencies flat

By Bansari Mayur Kamdar

April 29 (Reuters) - Emerging market stocks rose on

Monday, supported by heavyweight Chinese equities as real estate

shares rallied and as sentiment continued to recover after

global investment houses upgraded their views on the Asian

giant.

China's blue-chip CSI300 index and the Shanghai

Composite index rose 1.1% and 0.8%, respectively,

notching gains for their fourth straight session.

Supporting the rally, China's beleaguered property

developers jumped on speculation more stimulus measures are

likely to be unveiled this week, aimed at clearing inventory,

boosting sales and easing home purchase restrictions.

Hong Kong's Hang Seng index closed higher for its

sixth straight session after notching last week its best weekly

performance in more than 12 years.

Global investment houses are increasingly bullish about

Chinese stocks, driven by resilient corporate earnings and

policy efforts to boost shareholder returns.

The recovery in shares was supported by China's

better-than-expected first-quarter macro performance, the

'downside put option' underwritten by the 'national team' of

state-affiliated investors, solid fourth-quarter results,

engagement between the U.S. and China and Beijing's policy

initiatives targeting equity markets, Goldman Sachs strategist

Kinger Lau said in a note.

Meanwhile, data showed China's industrial profits fell in

March, raising doubts about the strength of a recovery for the

world's second-biggest economy.

The broader emerging markets stocks index rose

0.7% after its best weekly showing in nine months on Friday,

while the currencies index was little changed.

The dollar index slid 0.3%, extending its retreat

ahead of the Federal Reserve's rate decision this week.

South Africa's rand rose 0.3%, while Russia's rouble

weakened with low liquidity and activity due to

holidays.

Most central and eastern European currencies were nearly

flat against the euro.

Turkey's economic confidence index fell 1% month-on-month in

April. The lira traded at 32.41 against the dollar,

compared with a close of 32.4240 on Friday.

Pakistani stocks breached the key level of 73,000 to

trade at a record high of 73,300, ahead of the central bank's

monetary policy decision later in the day.

Also in focus, the International Monetary Fund's executive

board will meet to decide on releasing the final tranche of $1.1

billion to the cash-strapped nation.

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