MSCI increases Brazilian, Chinese stocks in indexes

MSCI Inc is increasing the number of Brazilian and Chinese stocks in its global standard indexes following a semi-annual review, reflecting a rally in the world's two largest developing markets.

China's Nine Dragons Paper Holdings Ltd and Brazil's Lojas Renner SA and PDG Realty SA Empreendimentos e Participacoes are the biggest additions to its emerging-markets index, MSCI said in a statement.

"Emerging markets' contribution to global GDP has been increasing substantially in recent years but from an indexes point of view, they still have a very small weighting overall," said Nader Naeimi, a Sydney-based strategist at AMP Capital Markets, which holds $75 billion in assets. "That's a trend that we're likely to see over the coming years."