By Gavin Serkin Feb. 26 (Bloomberg) -- Stocks rose around the world, driving the MSCI Emerging Markets Index higher for the first time in four days, on evidence of sustained economic expansion. Zinc led a rally in metals. The MSCI World Index of 23 developed nations’ stocks added 0.5 percent at 10:20 a.m. in London, while the emerging-markets gauge advanced 0.8 percent and futures on the Standard & Poor’s 500 Index climbed 0.3 percent. Zinc gained 3 percent, its first increase in five days. Indian Finance Minister Pranab Mukherjee predicted that the economy may grow at a 10 percent pace in the “not-too-distant future,” helping restore investor confidence that was rattled this week by warnings about Greece’s rising deficit. Britain emerged from recession at a faster pace than previously estimated in the fourth quarter, the government said. A U.S. report today may confirm that the world’s biggest economy expanded at a 5.7 percent clip in the fourth quarter. “Emerging markets are a strong, structural story,” said Michael Ganske, head of emerging-market research at Commerzbank AG in London. “Today’s movement is a reaction to the market being quite depressed over the past couple of days. We are facing a period of higher volatility rather than a long-term, sustained rally.” European Rally Europe’s Dow Jones Stoxx 600 Index climbed 0.7 percent as all 19 industry groups advanced. Cie. de Saint-Gobain SA, Europe’s biggest supplier of building materials, surged 5.7 percent in Paris after reporting better-than-estimated profit. Rio Tinto Group led gains in mining companies, rallying 2 percent in London. The MSCI Asia Pacific Index advanced 0.6 percent, capping its biggest weekly gain in six. Woolworths Ltd., Australia’s biggest retailer, climbed 5.5 percent in Sydney as it announced a share buyback. India’s Sensitive Index advanced 2.5 percent, the most in two months, and South Korea’s Kospi Index snapped a two-day slide. The gain in U.S. futures indicated the S&P 500 may rebound after yesterday’s 0.2 percent decline. The GDP report may show that the expansion, unchanged from a previous government estimate, was the fastest in six years. The Commerce Department report is due at 8:30 a.m. in Washington. Sales of previously owned homes probably rose in January on an extension of a government tax credit, a separate report from the National Association of Realtors due at 10 a.m. may show. Turkey, Kazakhstan Emerging-market stock gains were paced by a 1.5 percent advance in Kazakhstan’s KASE Index. Turkey’s ISE 100 Index rose for the first time this week, climbing 0.6 percent, while yields on benchmark two-year bonds fell 5 basis points to 8.99 percent and the lira strengthened 0.2 percent against the dollar after prosecutors released the three most senior army commanders held in a probe of an alleged coup, easing political tensions. South Africa’s rand strengthened the most in almost 11 weeks, rallying as much as 2.1 percent against the dollar, before paring the advance to 1 percent. The dollar fell for a third day against the euro, weakening 0.4 percent to $1.3597. The U.S. currency slipped against 14 of its 16 most actively traded counterparts. The yen dropped against all 16, falling 0.6 percent to 121.41 per euro. Copper for delivery in three months rose 1.8 percent to $7,125 a metric ton on the London Metal Exchange while zinc advanced $62.50 to $2,178.50 a ton. Gold for immediate delivery added 0.6 percent to $1,112.25 an ounce and palladium jumped 2 percent to $430 an ounce. Oil for April delivery rose as much as 0.6 percent to $78.67 in electronic trading on the New York Mercantile Exchange, and the contract is poised for a 7.8 percent gain for the month. JPMorgan Chase & Co. raised its 2010 forecast for oil, predicting crude will increase to $83.50 a barrel as demand improves and floating stockpiles decline. Its previous forecast was $78.25. To contact the reporter for this story: Gavin Serkin at gserkin@bloomberg.net

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