Emerging-market assets rise due to key elections, Mexican peso falls

From Yahoo: 2024-06-03 12:13:08

Emerging-market equities and currencies rallied after key election results worldwide, with MSCI Inc.’s currency gauge rising 0.2%. The Mexican peso tumbled following Claudia Sheinbaum’s win, sparking concern of increased state control and weaker stocks. The Morena Party’s control in Congress may bring constitutional changes, affecting market stability.

Asian tech stocks boosted the developing world equities index by 1.9%, its largest jump since December. Despite the peso’s decline, RBC Capital Markets sees potential for the currency to bounce back. Indian stocks hit record highs, and exit polls suggest a strong victory for Prime Minister Modi’s party.

Election impacts may dominate markets amid the ECB’s expected rate cut. ING strategist Chris Turner notes market focus on Mexican and South African results. Deutsche Bank advises long dollar positions against the rand due to uncertainties in South African coalition talks. Concerns over a weak government and policy delivery persist.



Read more at Yahoo: Emerging-Market Assets Gain as Traders Digest Key Elections