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Rally 2.0 On for Emerging Markets as Stocks Add $8 Trillion

  • Biden win, vaccine progress push index to best month since ‘16
  • Earnings estimates rise for 11th week as EM stocks outperform
Updated on

The much-awaited rally 2.0 in emerging-market stocks may already be under way.

Investors’ risk appetite got a boost after Joe Biden’s U.S. presidential win and successes in vaccine development, pushing the benchmark MSCI gauge toward its best month since March 2016. The emerging-market equity rebound since the coronavirus rout in March is now worth $8.3 trillion, meaning more shareholder wealth has been added in the past eight months than in the two-year rally beginning 2016.