Emerging Markets Rebound as Global Equities Rally

Emerging market stocks rebounded after last week's tech-led selloff. The MSCI index tracking EM stocks rose 1.9%, spurred by Wall Street's prior gains. Thailand's stocks and currency surged following an election win. Currencies firmed against the dollar, with traders eyeing economic data releases globally.

Most emerging market stocks saw a strong rebound on Monday, following a tech-focused selloff last week. This upturn was marked by significant gains in Thai stocks, the baht, and bonds subsequent to a definitive election victory.

The MSCI index, tracking global emerging market (EM) stocks, experienced a 1.9% rise—the first gain in three sessions—reaching its highest in over a week. From Asia to Europe, the equities market climbed, recovering from a week of volatility and losses in technology shares. This growth built upon Friday's Wall Street rebound, providing a much-needed stabilization in market sentiment.

Across central and eastern Europe, Ukraine's international dollar bonds gained following comments from U.S. President Donald Trump hinting at progress in discussions regarding Russia's war in Ukraine. Stock benchmarks in Poland, Hungary, Romania, and the Czech Republic rose by around 0.4% to 1%, with varying effects on currencies against the euro. Looking forward, investors watched for inflation data and central bank meetings likely to influence market direction.

(With inputs from agencies.)