Resurgence as Fed triggers new gains

Emerging markets resurged as the US Federal Reserve (Fed) triggered new gains.

Russia and Argentina announced a Eurobond sale, stocks Turkish and South African stocks gained at least 2 per cent, and Brazil's Ibovespa gained for the fourth-straight day.

Accommodating policy from the Fed and the Bank of Japan has emboldened investors seeking higher-yield assets outside of the industrialised world.

“The Fed’s dovish tone has created an Indian summer for the rally in emerging markets. High-yielders are fashionable again. We expect inflows, but not as much as during the summer. Investors have become more discriminate," said Guillaume Tresca, a senior emerging-market strategist at Credit Agricole CIB in Paris.

The MSCI Emerging Markets Index gained its most in six weeks with 1.6 per cent to 920.14.


Read more at Bloomberg.