By Michael Patterson March 8 (Bloomberg) -- Emerging-market stocks rose to a six-week high, currencies of commodity-producing nations strengthened and oil and metals advanced as Greece and Dubai moved closer to resolving their debt woes. The MSCI Emerging Markets Index climbed 1.2 percent at 10:30 a.m. in London, while Greece’s ASE Index gained 0.9 percent. The gap between Greek and German two-year notes narrowed 14 basis points to 364. Futures on the Standard & Poor’s 500 Index fluctuated between gains and losses. The Australian and New Zealand dollars strengthened against the U.S. currency and the yen. Copper increased more than 1 percent. French President Nicolas Sarkozy said the euro region is ready to rescue Greece should the government struggle to fund Europe’s biggest budget deficit, while former Federal Reserve Chairman Paul Volcker said the challenges posed by Greece’s debt aren’t “insuperable.” Dubai World, the state-owned holding company that’s trying to renegotiate about $26 billion of debt, will present a plan to creditors this month, said three bankers familiar with the negotiations. “Investors are returning to the market,” said Jacques Porta, a money manager at Ofi Patrimoine in Paris, which oversees about $425 million in equities. “Economic news is becoming more positive. Speculation on Greece has calmed.” Poland, Malaysia The MSCI emerging gauge extended last week’s 4.2 percent rally, climbing to within 0.2 percent of erasing its loss for the year. Poland’s WIG20 Index rose for a seventh day, the longest stretch of gains since December 2005. The FTSE Bursa Malaysia KLCI Index jumped 1.9 percent to the highest level in two years as the ringgit strengthened 0.7 percent against the dollar, leading gains in developing-nation currencies. Greece’s ASE gauge posted the biggest gain among 18 western European benchmark equity indexes, while yields on the government’s two-year notes dropped as much as 20 basis points to 4.69 percent. While Greece doesn’t need assistance now, “we have measures, we are ready, we are determined,” Sarkozy said in Paris yesterday after a meeting with Greek Prime Minister George Papandreou. U.S. President Barack Obama will meet with Papandreou in Washington tomorrow. The Dubai Financial Market General Index climbed 1 percent, rebounding from early losses after two bankers familiar with the negotiations said lenders may be repaid in full if they’re willing to wait for their money. The banks may also receive a guarantee from Dubai’s government, one of the bankers said. Nissan, Arrow The MSCI World Index of 23 developed nations’ stocks gained 0.3 percent. Asian stocks rallied, sending the MSCI Asia Pacific Index up 1.9 percent to its highest level in six weeks. Nissan Motor Co. advanced 4.7 percent in Toyko. Arrow Energy Ltd. surged 47 percent in Sydney after receiving a takeover offer exceeding A$3.3 billion ($3 billion) from Royal Dutch Shell Plc and PetroChina Co. The Stoxx Europe 600 Index fluctuated between gains and losses, and futures on the S&P 500 Index were little changed after the benchmark gauges last week erased their losses for the year. BHP Billiton Ltd. led basic-resource producers higher, rising 1.1 percent in London. Credit-default swaps on the Markit iTraxx Europe index of swaps on 125 companies with investment-grade ratings fell 2 basis points 76 basis points, the lowest level since Jan. 19, according to JPMorgan Chase & Co. Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings declined 12 basis points to 413. Aussie, Loonie The New Zealand dollar climbed 0.7 percent to 63.34 yen and Australia’s dollar strengthened 0.6 percent to 91.29 U.S. cents. The Canadian dollar appreciated 0.2 percent to C$1.0265 per U.S. dollar. Treasuries declined, sending the yield on the 10-year note 1 basis point higher to 3.69 percent, according to BGCantor Market Data, near the highest in almost two weeks. The Treasury is scheduled to auction $40 billion in three-year notes tomorrow; $21 billion in 10-year debt the following day; and $13 billion in 30-year bonds on March 11. The three-year sale ties a record. Copper for delivery in three months rose 1 percent to $7,618 a metric ton on the London Metal Exchange, extending last week’s 4.9 percent gain that erased this year’s decline. Zinc advanced as much as 2.6 percent to $2,410.75 a ton, the highest price since Jan. 22 and lead rallied 2.7 percent to $2,291 a ton, the highest price since Feb. 23. Crude oil for April delivery rose as much as 91 cents, or 1.1 percent, to $82.41 a barrel in after-hours electronic trading on the New York Mercantile Exchange. To contact the reporter on this story: Michael Patterson in London at mpatterson10@bloomberg.net.

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