Emerging Markets Surge: Trade Truce Boosts Global Confidence
Emerging market stocks rallied after the U.S. and China agreed to reduce trade tariffs. The MSCI emerging market index rose 1.8%, while Hong Kong's Hang Seng and Chinese stocks also saw gains. Pakistan, India, and Turkey experienced significant stock upticks, fueled by easing geopolitical tensions and financial agreements.
Global markets experienced a positive start to the week as the U.S. and China reached an agreement to lower trade tariffs. This development, coupled with lessening geopolitical tensions across various regions, bolstered market sentiment.
The MSCI index tracking emerging market stocks surged by 1.8% on Monday, marking levels not seen since last October. The temporary trade truce between the U.S. and China paved the way for the tariff baseline rate to drop to 10%, providing a much-needed stimulus to international markets.
Several emerging economies saw significant market movements. Pakistan's stocks soared by 9.9%, motivated by a truce with India, while Turkish stocks climbed 3.2% following a report of the PKK disbanding. Additionally, pending discussions between Russia and Ukraine also played a key role in strengthening market outcomes, with the rouble appreciating 2%.
(With inputs from agencies.)
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