“At this juncture, markets appear to be operating on two axes of differentiation — AI/tech momentum and oil/geopolitical risk,” said Vivek Rajpal, Asia strategist at JB Drax Honore in Singapore. “With no incrementally negative news on the geopolitical or oil-price front, markets are finding more latitude to refocus on the AI cycle.”
(May 4): Emerging-market assets gained, with strong tech earnings and hopes of a resumption in shipping through the Strait of Hormuz lifting sentiment.
MSCI’s emerging market index rose 2.9% to a record high, with South Korean stocks leading the gains. A similar gauge for developing world currencies advanced 0.3% while Bloomberg’s dollar spot index edged lower.
