Emerging-Market Stocks Are Having a Moment as Growth Bets Return
- Hopes for Fed peak, US soft landing fuel risk appetite
- Equities outperform after bond rally prices in rate cuts
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Investors in emerging markets are shifting to stocks from bonds as they prepare for the world after monetary tightening.
There are early signs of a rotation under way, with equity benchmarks beating local-currency bonds since the beginning of July. And traders are already starting to chase the rally, with Bank of America Corp. reporting that emerging-market equities have absorbed $4.1 billion in the week to Aug. 2, adding to inflows in the previous three weeks.