Is The U.S. Leading the Global Economy Out of a Downturn?

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Emerging market stocks rose on positive U.S. unemployment and economic data. The MSCI Emerging Markets Index (MXEF) gained 1.37% on Friday, climbing over 3% throughout the week on course for its longest run of weekly advances since October 2010, reports Bloomberg.

U.S. employment data showed payrolls increased by 243,000 last month, the highest since April, and lowest rate unemployment rate (8.3%) since February 2009. The results were well beyond expectations.

Employment data is a leading indicator or economic growth, especially because it correlates with higher consumer spending. Positive U.S. data therefore has a strong effect on emerging markets that have an economic dependence on America's consumer market.

Business section: Investing ideas
Interested in investing in companies that could benefit from this turnaround in growth?

For ideas, we created a universe of BRIC (Brazil, Russia, India, China) stocks trading on the U.S. exchanges. We then collected data on short-selling activity, and identified a list of companies that have seen significant short covering over the last month.

Short-sellers seem to think these stocks are ready to pop higher -- do you agree? (Click here to access free, interactive tools to analyze these ideas.)

1. Cninsure: Provides insurance brokerage and agency services, and insurance claims adjusting services in the People's Republic of China. China. Shares shorted have decreased from 2.82M to 2.44M over the last month, a decrease which represents about 1.44% of the company's float of 26.47M shares.

2. Changyou.com (NAS: CYOU) : Develops and operates online games in the People's Republic of China. China. Shares shorted have decreased from 372.33K to 220.03K over the last month, a decrease which represents about 1.52% of the company's float of 10.04M shares.

3. GOL Linhas A (NYS: GOL) : Operates as a low-cost low-fare airline in Latin America. Brazil. Shares shorted have decreased from 7.42M to 6.06M over the last month, a decrease which represents about 1.49% of the company's float of 91.12M shares.

4. Zhongpin (NAS: HOGS) : Engages in the processing and distribution of meat and food products primarily in the People's Republic of China. China. Shares shorted have decreased from 3.74M to 3.20M over the last month, a decrease which represents about 2.07% of the company's float of 26.10M shares.

5. Mindray Medical International: Mindray Medical International Limited, through its subsidiary, Shenzhen Mindray Bio-Medical Electronics Co., Ltd., develops, manufactures, and markets medical devices worldwide. China. Shares shorted have decreased from 14.59M to 13.40M over the last month, a decrease which represents about 1.42% of the company's float of 83.77M shares.

6. Noah Holdings: Engages in the distribution of wealth management products to the high net worth population in China. China. Shares shorted have decreased from 2.63M to 2.29M over the last month, a decrease which represents about 1.95% of the company's float of 17.44M shares.

7. SouFun Holdings: Provides marketing, listing, technology, and information consultancy services to real estate and home furnishing industries in the People's Republic of China. China. Shares shorted have decreased from 2.11M to 1.90M over the last month, a decrease which represents about 1.91% of the company's float of 11.00M shares.

8. Trina Solar (NYS: TSL) : Designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. China. Shares shorted have decreased from 16.27M to 15.58M over the last month, a decrease which represents about 1.16% of the company's float of 59.34M shares.

9. VanceInfo Technologies (NYS: VIT) : Engages in the provision of information technology (IT) services. China. Shares shorted have decreased from 7.48M to 7.10M over the last month, a decrease which represents about 1.51% of the company's float of 25.18M shares.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Short data sourced from Yahoo! Finance.

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