Emerging market stocks rise to over one-week high on easing oil prices
Emerging market stocks rose on Monday, hitting a more than one-week high, as lower oil prices and gains in AI-related stocks boosted sentiment. MSCI's index tracking EM stocks rose 1.45%, lifted by Asian tech-heavy bourses in South Korea and Taiwan.
MSCI emerging market stock index rises to more than one-week high Markets watch UN General Assembly for possible resumption of US-Iran talks Vietnamese stocks join FTSE Russell EM index Turkish stocks at four-month low By Utkarsh Hathi Sept 21 (Reuters) — Emerging market stocks rose on Monday, hitting a more than one-week high, as lower oil prices and gains in AI-related stocks boosted sentiment, while currencies largely held steady against the dollar.
72 per barrel on renewed hopes for diplomatic progress in the US-Iran war, though supply risks linger after Washington and Tehran exchanged fresh threats on Sunday, and Yemen's Houthis said they attacked sites in Saudi Arabia over the weekend. O/R Still, US President Donald Trump said he was open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assemblystarting Tuesday in New York, raising hopes the two sides could restart talks to end the six-month-old conflict. "The immediate headlines are positive for emerging markets.
I think it's not like a game changer and more like a relief after quite painful last week for EM," said Frantisek Taborsky, EMEA FX & FI strategist at ING. 1%, respectively. 23% against the dollar. EM stocks and currencies closed in the red last week after the Federal Reserve hiked interest rates, its first since 2023, boosting the dollar.
Investors now brace for a busy week in emerging markets, including policy decisions in Hungary, Mexico and South Africa as well as economic data that could set the tone for regional assets. 4% to its lowest since May 22, extending declines after a policy-driven rebound, suggesting investors' doubts about liquidity measures to support the market. The Turkish lira was muted against the dollar. 1% against the euro ahead of the central bank's interest rate decision on Tuesday.
"We expect no change in rates, but the main focus will be on the inflation target review. How much and what's the timeline for the change of the inflation target for the central bank," said Taborsky. 3%. Wage growth in the country slowed more than expected in August, easing pressure on inflation, data showed on Monday.
In South Africa, the rand was stable ahead of the inflation data and the central bank's rate decision later in the week. 2%. 7% on expectations of a US-China trade truce ahead of a meeting between Presidents Trump and Xi Jinping this week. 88%, reversing earlier gains driven by the benchmark's addition to FTSE Russell's emerging market indexes on Monday, a milestone for the country's stock market after years of reforms to attract foreign investors.
Highlights: * Xi rolls into Trump summit with China's trade engine roaring * South Korea's Lee to attend UN General Assembly, visit Mexico for Sheinbaum summit * Malaysian regulator to ask publicly traded firms for El Nino plans, eyes deeper Middle East ties For TOP NEWS across emerging markets... com;)