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Seoul - Emerging-market stocks rose for the first time in three days as a pause in the dollar’s rally revived demand for higher-yielding assets.
A gauge of developing-nation shares extended a weekly gain, led by India, China and Thailand. An index of mainland shares traded in Hong Kong headed for its best week since July. India’s rupee rallied after dropping to a record on Thursday.
Turkey’s lira fell for a fourth day, reaching an all-time low. A surge in the dollar on the prospect of higher Federal Reserve interest rates has sapped demand for riskier assets this month.
“It is just volatility but the trend remains the same and that is the dollar macro story is rather strong,” said Trinh Nguyen, a senior economist at Natixis Asia in Hong Kong.
“There is volatility as this is based on expectations rather than reality. I would not read this as a reversal of the dollar, rather just day-to-day moves.”
The MSCI Emerging Markets Index gained 0.4% as of 09:37 on Friday after dropping 0.6% during the previous two days. A gauge of developing-nation currencies rose 0.1%, trimming this month’s loss to 3.1%.
Benchmark share indexes rise 1.1% in India, 0.6% in China, and 0.5% in Thailand The Hang Seng China Enterprises Index advanced for a fifth day, climbing 1.5%. The gauge has risen 5% this week, the most since the period ended July 15.
PICC Property & Casualty rose 5.3%, and China Life Insurance advanced 4.4% Rupee strengthens 0.5% after sliding to a record 68.865 per dollar Thursday Hungarian forint appreciates 0.6%, the rand gains 0.4%.
Turkish lira slid as much as 0.9% to a record 3.4766 per dollar even after the central bank unexpectedly raised interest rates on Thursday The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, dropped 0.3%.
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