Emerging Markets Cheer Fed as Currencies, Stocks Jump

  • Developing-nation stocks erase 2016 loss as rally resumes
  • Local political issues taking more prominent role in markets

Morning Meeting: BlackRock's Emerging Market View

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Emerging markets rallied as the Federal Reserve’s dovish turn boosted demand for riskier assets and Brent crude’s advance above $41 a barrel pushed energy stocks to a four-month high.

A gauge of 20 developing-nation currencies rose to a four-month high after U.S. policy makers signaled two interest-rate increases this year, down from four forecast in December. The real strengthened the most since September on renewed speculation that there will be a change in Brazil’s government. South Korea’s won advanced the most in four years. The MSCI Emerging Markets Index traded within 1.2 percent of a bull market.