Emerging Markets Surge: AI and Trade Deals Ignite New Records

Emerging markets rallied to new high records as a U.S.-Taiwan trade deal and strong AI-stocks performance boosted investor confidence. The MSCI stock index reached new peaks, with TSMC leading AI interests. Currency markets faced challenges due to a robust U.S. dollar. Key global developments were monitored, including IMF negotiations.

Emerging market stocks surged on Friday, setting new record highs as investors reacted to a trade deal between the U.S. and Taiwan. The deal cuts tariffs and encourages U.S. technological investments, boosting market confidence.

Strong Q2 results from TSMC revitalized AI-related stocks, pushing Taiwanese and South Korean indexes to unprecedented heights. UBS analysts emphasized AI's vital role in the long-term performance of equity markets.

While currencies remained subdued amidst a strong U.S. dollar, the MSCI emerging markets stock index gained significantly, marking its fourth week of consecutive gains. Global market attention included geopolitical developments and IMF negotiations in Eastern Europe.

(With inputs from agencies.)