Emerging Markets Outperform as Investors Shift Away from US Assets
Stock markets in emerging economies extended their rally for a fifth consecutive week, marking the longest streak of gains since May. Asian technology stocks have been pivotal in driving this surge, while Latin American equities have soared 13% year-to-date—far outpacing the S&P 500's meager 1% rise.
China's central bank signaled confidence in the yuan by setting its daily reference rate above 7 per dollar for the first time in over two years. Meanwhile, South Africa's benchmark index notched a third weekly advance, and gold hovered NEAR $5,000/oz as investors sought alternatives to dollar-denominated assets.
The rally represents a historic inflection point for emerging markets, with regional indexes hitting multi-year highs. Europe, the Middle East, and Africa are now joining Asia's momentum, tracking toward their strongest monthly performance since 2020.
