Emerging Assets Rise Fourth Day as Investors Focus on Fed Timing
- Colombian peso, South Korean won lead gains in currencies
- Odds of Fed rate increase this month decline to 22 percent
A Deep Dive Into the Emerging Markets Rally
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Emerging markets rallied for a fourth day as traders weighed the potential time-line for Federal Reserve interest rate increases in light of disappointing U.S. economic data.
The MSCI Emerging Markets Index extended gains to the highest level since July 2015 as benchmark equity gauges from Russia to Taiwan advanced at least 0.7 percent. Philippine stocks fell for a third day amid speculation outbursts by President Rodrigo Duterte are hurting investor sentiment. The Colombian peso and South Korea’s won led developing-market currencies higher as futures traders reduced the odds of a Fed move this month to 22 percent.