Malaysia’s ringgit and the benchmark stock index rose the most in two weeks as risk appetite returned following the Paris terror attacks, with a rally in Brent crude brightening the outlook for the net oil exporter.

The currency halted a three-day drop as the FTSE Bursa Malaysia KLCI Index of shares followed European and US equities higher. Brent extended its gain this week to 2.5 percent, a boost for the country that derives 22 percent of government revenue from oil-related sources. Malaysia hosts leaders from the Association of South-East Asian Nations in Kuala Lumpur this week, with security expected to be tight following the carnage in the French capital.

“Risk appetite has returned and currencies in emerging markets are regaining ground,” said Nizam Idris, head of foreign exchange and fixed-income strategy at Macquarie Bank Ltd in Singapore. “The recovery in Brent as well as US and European stocks also helped sentiment.”

The ringgit appreciated 0.2 percent to 4.3748 a dollar as of 10.30am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. It weakened to 4.4005 yesterday, the lowest level since Oct 5. The KLCI index rose 0.7 percent.

Brent crude has more than halved from its 2014 peak to around US$44.72 a barrel, helping spur a 20 percent decline in the ringgit this year, the worst performance among 24 emerging- market currencies tracked by Bloomberg after the Brazilian real and Colombian peso.

France is seeking to forge an alliance with the US and Russia to destroy Islamic State, with last week’s attackers believed to be Europeans directed from Syria. A Malaysian cell of the terrorist group planned to kidnap government leaders to demand the release of militants detained locally, The Star newspaper reported today, citing Special Branch Counter Terrorism Division head Ayob Khan.

Government bonds fell. The five-year yield rose one basis point to 3.84 percent and the 10-year yield climbed two basis points to 4.37 percent, according to prices from Bursa Malaysia.

- Bloomberg