Emerging markets rallied in anticipation of the upcoming US Federal Reserve decision to raise interest rates.
Fed Chair Janet Yellen is expected to announce an interest rate hike before the end of the year.
Stocks, currencies, and commodities gained as growth outlook is optimistic, along with larger foreign-exchange reserves.
“The prospect of a resumption of tightening by the U.S. Fed will be a concern for a handful of emerging markets. But these are the exceptions rather than the rule,” said Krystal Tan, an economist at Capital Economics.
The International Monetary Fund (IMF) raised expectations for emerging markets in its October forecast with anticipated growth of 4.2 per cent. Analysts estimate that emerging markets are growing their fastest in 18 months, encouraged by higher commodity prices and a more stable China.
Emerging markets now account for 45 per cent of global trade, up from 30 per cent in 2000.
Read more at Bloomberg.