Emerging Stocks Rebound as Currencies Gain on Fed Rate Outlook
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Emerging-market stocks ended a three-day decline and currencies from Brazil to South Africa strengthened as U.S. jobs data fueled speculation that the Federal Reserve won’t start raising interest rates anytime soon.
The MSCI Emerging Markets Index added 1 percent to 1,034.94, reducing its loss this week to 1.1 percent. While figures showed U.S. payrolls rebounded in April, revised data for the previous month reflected a bigger setback than previously estimated. Investors in riskier markets are looking for clues on the timing of the Fed’s first rate increase since 2006, which threatens to damp the appeal of their assets.