Trump Trade-Deal Hopes Fuel Rally Across Emerging-Market Assets

Emerging-market assets rallied Monday in a global risk-on session as traders welcomed signs of easing trade tensions between the US and China.

The MSCI index tracking developing-nation stocks rose 1.4%, hitting its highest level since February 2021. A separate MSCI gauge of emerging-market currencies also advanced as the dollar weakened, with the South Korean won and the Hungarian forint among the biggest gainers.

Emerging-market assets had a “positive” session, “with all the goods news across the board, particularly the China-US truce and the potential dovish cut coming from the Fed,” said Marco Oviedo, a strategist at XP Investimentos.

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