* Emerging markets set for 5th day of gains
* Brazil, S Africa shares touch three-month highs
* Wall St flat as investors await monthly jobs data
* Oil mixed after three days of gains
(Updates prices, data, adds quote)
By Dion Rabouin
NEW YORK, March 3 (Reuters) - World stock markets touched a
two-month high on Thursday, led by gains in emerging market
stocks, as positive economic and political news soothed concerns
about global growth and commodities prices extended their
recovery.
A measure of emerging-markets shares .MSCIEF rose 1.4
percent for a fifth day of gains, its longest winning streak so
far this year. Wall Street was modestly lower, but U.S. stocks
have recovered notably from lows reached in February.
The MSCI emerging markets index was on track for its biggest
weekly gain since October 2015, led by South African and
Brazilian shares, which both rose to their highest in three
months.
Stronger metals boosted South African stocks, with telecoms
group MTN MTNJ.J surging 9.5 percent.
Brazil's Bovespa index rose nearly 5 percent after news that
could bolster a case to impeach President Dilma Rousseff. That
encouraged investors who blame her administration's policies for
driving Brazil into what could be its deepest recession ever.
"The market is betting Rousseff will not finish her
mandate," said Pedro Tuesta, an economist with 4Cast in
Washington D.C.
The rally in emerging markets overall has followed a cut in
reserve requirements for Chinese banks earlier in the week, a
move that analysts say could add $100 billion to the Chinese
economy.
Commodities have surged in tandem with the return of risk
appetite that has swept markets over the past two weeks. Copper
prices hit their highest since November, backed largely by news
of fresh stimulus from China. Copper CMCU3 was up 1.3 percent
on the day.
China, the world's No. 2 economy and massive consumer of
commodities, moved to cut banks' reserve requirement ratio
earlier in the week, indicating a slight easing bias in its
monetary policy. China accounts for nearly half of global copper
consumption estimated at about 22 million tonnes this year.
"Emerging markets are outperforming developed markets this
year to date, but it comes after a horrible 2015," said Win
Thin, global head of emerging market currency strategy at Brown
Brothers Harriman.
Emerging market stocks .MSCIEF fell nearly 17 percent in
2015, and more than 6.5 percent in January, as investors pulled
back on riskier stock markets due to concern about weak demand
worldwide. That concern was fanned by sharp falloffs in
commodities prices, particularly oil.
Since then, oil has recovered some of its losses, though it
still trades far below its average over the last year. On
Thursday, Brent crude LCOc1 rose 0.2 percent to $37.01 and
U.S. crude CLc1 was down 0.2 percent to $34.60.
MSCI's world equity index .MIWD00000PUS rose 0.6 percent.
The Dow Jones industrial average .DJI fell 11.61 points,
or 0.07 percent, to 16,887.71, the S&P 500 .SPX gained 0.24
points, or 0.01 percent, to 1,986.69 and the Nasdaq Composite
.IXIC dropped 6.60 points, or 0.14 percent, to 4,696.82.
The U.S. non-manufacturing sector expanded at a slower pace
in February from January, pushing down the dollar, which makes
dollar-denominated commodities more attractive for non-U.S.
firms when it falls.
The dollar index .DXY , which measures the greenback
against six major rivals, was down 0.7 percent.
U.S. Treasury US10YT=RR prices were flat as investors
looked ahead to Friday's key employment report. A solid jobs
report could bolster expectations that the Federal Reserve
remains on track to raise interest rates later this year. The
10-year U.S. benchmark was down 3/32 to yield 1.85 percent.
Year-to-date asset performance http://fingfx.thomsonreuters.com/2014/05/01/1605285136.htm
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