Russian stocks surged the most in more than 10 months, regaining Tuesday's losses, and the ruble climbed as rising commodity prices boosted the outlook for the world's biggest energy exporter.
Gazprom jumped 10 percent, while Sberbank advanced 6.7 percent. The 30-stock MICEX Index rose 5.7 percent to 1,265.2 at the close, wiping out Tuesday's loss that pushed the gauge into a so-called bear market. The ruble strengthened 1.4 percent to 31.19 versus the dollar, its biggest gain since Jan. 11.
Crude jumped as much as 4.1 percent to $71.54 per barrel after a report showed that U.S. orders for durable goods increased for the fourth time in five months, signaling growing manufacturing in the United States. Stocks in Russia have retreated 12 percent this month on concern that a growing debt crisis in Europe may hamper economic growth.
"We are seeing a rebound, but most investors are hiding," said Joseph Dayan, head of international sales and trading at the Otkritie brokerage. "Long-only funds have increased their cash positions to 30 percent. It's about capital preservation until they see Europe debt stabilizing."
Raspadskaya jumped the most since November 2008 and OGK-4 surged to the highest since April that year on the last day of trading before MSCI adds the stocks to its benchmark Russia index. Magnit, the country's second-biggest food retailer, will also join the MSCI gauge. The stock rose 12.5 percent.
The companies are "outperforming today as index tracking funds are buying them ahead of their MSCI inclusion at close of business today,” said John Heisel, a sales trader at Citigroup.
"The correction on the Russian stock market is close to its end, thereby providing an excellent entry opportunity," Vladimir Kuznetsov, an analyst at UniCredit, wrote in an e-mailed note. "Although far from rosy, the latest macroeconomic picture points to a more-or-less sustainable recovery."