Emerging Markets Rally Amid U.S. Tariff Talks

Emerging market currencies and stocks rose on Tuesday as investors remained optimistic despite U.S. President Donald Trump's latest tariff strategy. Market participants are betting on more trade deals before the recently extended deadline.

On Monday, Trump proposed imposing 25% tariffs on several key trading partners, including Japan, South Korea, and Malaysia, escalating tensions that have been building this year. However, he extended the deadline for negotiations until August 1, providing countries more time to secure agreements.

Major economies in Southeast Asia are intensifying negotiations to reach a deal before the new deadline. The South Korean won and Thailand's baht reclaimed their losses from Monday. Meanwhile, South Africa saw a recovery in assets despite facing a 30% tariff threat. Other nations, such as the European Union and India, are also rushing to secure trade deals with the U.S. in light of the new tariff proposals.

(With inputs from agencies.)