Emerging-Market Assets Rise as Fed Outlook Boosts Risk Demand
Emerging-market stocks headed for the biggest weekly advance in five months and currencies strengthened after the Federal Reserve’s decision to hold off from raising interest rates eased the risk of capital outflows from developing nations. Hanmi Pharm Co. jumped 11 percent in Seoul to lead health-care stocks higher. India’s benchmark index climbed to a four-week high. Philippine and South Korean shares rose 1 percent. The Indian rupee added 0.6 percent versus the dollar and Malaysia’s ringgit
Yellen Leaves Rates Well Alone... For Now
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Emerging-market stocks and currencies posted back-to-back weekly gains as traders bet that U.S. interest rates will stay lower for longer after the Federal Reserve refrained from raising benchmark borrowing costs at its meeting this week.
The MSCI Emerging Markets Index rose 3.4 percent to 829.86 in the five days through Friday. A Bloomberg gauge of 20 currencies increased 0.8 percent, as advances in Malaysia’s ringgit and South Korea’s won helped outweigh a slump in Brazil’s real.