Why were emerging market stocks and bonds little changed on Tuesday?

Emerging market stocks and bonds were little changed due to a firmer U.S. dollar and significantly thinner trading volumes, with major Asian markets closed for the Lunar New Year.

What contributed to the gains in emerging market indexes?

India's Infosys Ltd. climbed significantly after announcing plans to develop artificial intelligence solutions for companies in various sectors.

What is the key factor influencing emerging market assets?

The U.S. dollar's trajectory is considered the key factor for emerging market assets, with its recent stability providing a positive backdrop for local currencies.

Home / Business and Economy / EM Stocks Pause as Dollar Firms, Trading Thins

EM Stocks Pause as Dollar Firms, Trading Thins

17 Feb

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Summary

Emerging market stocks and bonds saw minimal change due to a stronger dollar.
Low trading volumes were observed because of holidays in major Asian markets.
Infosys's AI development plans contributed significantly to market gains.

EM Stocks Pause as Dollar Firms, Trading Thins

Emerging-market equities and debt showed minimal fluctuation on Tuesday. This subdued performance was largely attributed to a stronger U.S. dollar and significantly thinner trading volumes. Major financial markets, including China and South Korea, were closed for the Lunar New Year holiday, impacting overall activity. The MSCI Emerging Markets Index experienced a slight uptick, extending its recent positive streak.

Infosys Ltd., an Indian technology firm, was a notable performer, contributing substantially to the index's gains. The company announced its intention to develop artificial intelligence solutions for various corporate sectors. This strategic move occurs as India hosts a major AI summit, highlighting its commitment to advancing its global technology standing.