Emerging market assets experienced a significant surge on Wednesday, with a key index tracking stocks in these economies on track for its best session since March 2020, buoyed by a ceasefire agreement between the United States and Iran.
The MSCI Emerging Markets Index rose by 5.49% to 1539 points, increasing its year-to-date gains to 9.63%. The Dubai and South African markets were among the top performers, with Dubai’s financial market index climbing by 6.91% to close at 5777 points, while the FTSE/JSE index in South Africa jumped 3.96% to 119524 points.
Latin American stocks also saw notable increases, as the MSCI Latin America Index, which tracks regional performance, advanced by 4% to 3249 points. The Brazilian Bovespa Index rose by 2.27% to 192538 points, and Mexico’s IPC Index gained 2.98% to reach 70572 points.
In terms of currency performance against the dollar, the South African rand appreciated by 2.63%, the Hungarian forint by 2.30%, and the Chilean peso by 2.44%.