Emerging market stocks and currencies rose on Wednesday, as hopes of positive results from US-China trade talks boosted risk sentiment.
China’s foreign ministry said talks with the US had concluded and the results would be released soon.
MSCI’s index of emerging market stocks hit a one-month high and were up 1.3 per cent, while its index of emerging market currencies tacked on 0.2 per cent to move closer to an over five-month peak hit on Monday.
Investors hope the world’s top two economies can strike a deal to ease their bruising trade war, which has cost both sides billions.
US President Donald Trump tweeted on Tuesday that talks with China were going “very well” and benchmark US stocks ended the day 1 per cent higher.
“Judging from upbeat equities on Wall Street against a backdrop of Trump’s cheerleading tweet for US-China trade talks, it is patently clear that the mood music on US-China trade talks is soothing, if not outright sweet!” wrote Vishnu Varathan, head of economics and strategy at Mizuho Bank, in a note on Wednesday.
Stocks in China, South Korea and Taiwan — countries heavily exposed to global trade — ended between 0.7 per cent and 2 per cent higher.