Investors are betting the months-long rally in emerging markets has further to run even as tariff threats and escalating geopolitical tensions signal a rocky path ahead.
Money managers from Lazard Asset Management Ltd. to Pictet Asset Management Ltd. have been scooping up Latin American local bonds, Asian currencies and some high-yield sovereign debt. The optimism — fueled by fading concerns about Trump’s trade policies — got a fresh boost last week after a string of soft US inflation data reignited bets the Federal Reserve will lower interest rates more than once this year. That helped send the dollar to 2022 lows, pushing EM assets to extend yearly gains.
www.bloomberg.com
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