Emerging Markets Surge Amid U.S. Tariff Turmoil

Emerging-market stocks rose as investors shifted away from U.S. assets due to new tariff uncertainties. The MSCI EM index increased by 1%, with significant gains in tech-heavy Asian markets. Analysts remain optimistic about emerging markets' growth, especially with Nvidia's earnings in focus. Meanwhile, Israeli, Nigerian, and Hungarian rate decisions are upcoming.

On Monday, emerging-market stocks exhibited a notable rise, driven by investors' migration from U.S. assets amid renewed tariff uncertainties. The MSCI index tracking these stocks jumped 1%, and the corresponding currency index inched up 0.2%.

The shift towards emerging economies gained momentum following the U.S. Supreme Court's decision to overturn President Donald Trump's emergency tariffs. Subsequently, Trump announced new levies, affecting global markets. Tech-centered Asian markets, particularly Hong Kong and South Korea, showed robust gains as the financial world anticipates Nvidia's earnings later this week.

Optimism remains strong in the emerging markets sector despite recent market sell-offs in AI and software stocks. Analysts forecast monthly gains exceeding 3% for the broader EM equity gauge, with nations like Poland, Turkey, and South Africa leading the way. Meanwhile, market players eye key interest rate decisions from Israel, Nigeria, and Hungary, with mixed movements in local currencies.

(With inputs from agencies.)