The stronger demand for emerging-economy assets is part of a global rally spurred by the two-week ceasefire agreement that’s expected to result in the reopening of the Strait of Hormuz. The slump in oil prices also has rekindled hopes for the Federal Reserve to resume cutting interest rates later this year.
(April 8): Emerging-market assets gained after a ceasefire deal between the US and Iran caused oil prices to plunge and revived risk appetite.
The MSCI EM stock gauge rose 4.3% on Wednesday, while its currency counterpart added 0.8%. Brent crude oil fell 16% to US$91.70 ($116.88) a barrel at one point. Bonds rallied.
