MOSCOW, Nov 5 (Reuters) - Russian shares edged higher on Tuesday after a three-day holiday, led by shares in crude producer Surgutneftegas on expectations for higher dividends this year after it posted strong nine-month results.
At 0756 GMT, the rouble-denominated MICEX index was up 0.2 percent at 1,518 points. The dollar-denominated RTS was up by the same margin at 1,478 points.
An improvement in the business outlook for China was supportive for commodities and emerging market assets, which may also benefit Russian equities, Uralsib analysts said in a note.
Russian metals and mining stocks added 0.4 percent.
Ordinary stocks in Surgutneftegas rose 1.1 percent , while preferred shares added 2.2 percent after Russia's fourth-largest oil producer reported a 72-percent increase in net income for the first nine months of the year.
'Surgutneftegas prefs (preferred shares), along with those of Tatneft, offer the most attractive dividend play in the Russian oil and gas space,' Alexander Kornilov, an analyst at Alfa-bank, said in a note, estimating a 2013 full-year dividend at 2,2 roubles ($0.07)-2.5 roubles per preferred share, which suggests a 9.3-10.6 percent dividend yield.
The rouble edged up before a central bank meeting on Friday. Economists see the bank cutting key interest rate in the first quarter of 2014, providing support for the currency.
The rouble was up 0.2 percent against the dollar at 32.36 and up 0.1 percent against the euro at 43.67 , leaving it down 0.1 percent at 37.45 against the dollar-euro basket monitored by the central bank.
Russia's 10-year treasury bond yield was flat at two-week highs on Tuesday.
'We expect pressure in the (treasury bond) curve to build up through the year end on the back of continuing primary supply, a lack of long-term investors and gradual pressure in the benchmark UST rates,' analysts at VTB Capital said in a note.
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(Additional reporting by Katya Golubkova, writing by Maya Dyakina, editing by Elizabeth Piper) Keywords: RUSSIA MARKETS/
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