Emerging Assets Climb as Dollar Trump Trade Takes a Breather
- South African rand rallies amid calls for Zuma to resign
- Equity benchmarks in Turkey, Hong Kong and Taiwan advance
Is it Time to Jump Into Emerging Markets?
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Emerging-market currencies posted their biggest advance in more than nine weeks as investors bet the so-called Trump trade, which has bolstered the U.S. dollar, was overdone.
The South African rand, Turkish lira and Colombian peso were the best performers among developing-nation currencies. Brazil’s real rose against the dollar for the first time in five days. A gauge of emerging-market equities trimmed its loss since Donald Trump’s surprise U.S. presidential win to less than 5 percent. U.S. bond yields fell, leading investors to return to the higher-returning assets they abandoned amid speculation Trump’s policies would fuel inflation and spur rate hikes.