Stocks advanced, paring their worst weekly loss in more than a year, as oil rose after an increase in U.S. retail sales tempered concern that the global economy is slowing.
The 30-stock MICEX Index advanced 2.2 percent to 1,470.56 by the 6:45 p.m. close on Friday in Moscow, its biggest gain in almost four months. That pared its weekly loss to 7.3 percent, the worst since May 2010. Rosneft jumped 4.2 percent. Norilsk Nickel climbed 4 percent after Citigroup said the stock was "oversold." Rostelecom, the dominant fixed-line telephone operator, surged 15 percent. The dollar-denominated RTS Index rallied 3.2 percent to 1,594.68.
Oil, Russia's main export revenue earner, added 0.5 percent to $86.18 a barrel in New York. Russian stocks extended gains after the U.S. Commerce Department said retail spending increased 0.5 percent, following a gain in June that was larger than previously estimated.
"As the dust settles on a tumultuous week, it's clear that some of the hysteria is abating and that redemptions are relenting slightly," Julian Rimmer, a trader of Russian shares at CF Global Trading, said in e-mailed comments.
Markets have tumbled globally since July 26 after Standard & Poor's downgraded the U.S. credit rating for the first time and Europe's debt crisis spread.
Investors withdrew $412 million from Russia-focused equity funds in the week to Aug. 10, according to UralSib Financial, citing data from EPFR Global, a Cambridge, Massachusetts, based researcher.
"This is the biggest outflow Russian funds have seen since May 2006," Brad Durham, an EPFR managing director, said Friday.