Emerging Stocks Rise to Record High on AI, Iran’s Hormuz Offer
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v456mr5o792o2b{vm)1n(wge_media_dl_1.png BloombergArticle content(Bloomberg) — Emerging-market equities rose to a record high, buoyed by optimism over artificial intelligence and a report that Iran offered a new proposal to reopen the Strait of Hormuz.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe MSCI EM Index rose as much as 1.5% on Monday, surpassing the previous peak in February. Investors have been placated by a lack of re-escalating tensions in the Middle East, with a ceasefire between the US and Iran holding since early April. A gauge tracking developing-world currencies also gained about 0.2%. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentRead Axios report: Iran offers U.S. deal to reopen strait but postpone nuclear talksArticle contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentEmerging-market stocks are staging a stunning recovery after sliding more than 10% after the Iran war erupted. Gains in Asian shares, which comprise about 76% of the index, are helping the rebound as investors focused on optimism around AI, with indexes in South Korea and Taiwan hitting a record high on Monday too. Article contentThe rally “underscores a market being propelled by structural forces rather than short‑term news flow,” said Gary Tan, a portfolio manager at Allspring Global Investments. “We expect the MSCI EM to grind higher into year end, led by strong earnings momentum from AI beneficiaries alongside sustained investment in energy, infrastructure, and defense.”Article contentEM stocks have advanced about 16% this year, thrice the gains of the S&P 500 Index. The MSCI Emerging Markets Index is projected to deliver an 18% return over the next 12 months, compared with 16% for the MSCI World Index, based on Bloomberg’s aggregation of consensus target prices for the constituents of both benchmarks.Article contentArticle contentArticle content(Updates with fund manager’s comment in fourth paragraph.)Article contentTrending Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Where Canada's condo market is headed: FP Video News An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining Posthaste: Here's what the Bank of Canada will do when it moves on interest rates, says top think tank News Canada's condo supply is about to fall off a cliff Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Where Canada's condo market is headed: FP Video News An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining Posthaste: Here's what the Bank of Canada will do when it moves on interest rates, says top think tank News Canada's condo supply is about to fall off a cliff Real Estate