Emerging-market stocks are headed for their first weekly gain since late September, as investors return to the technology sector on bets the wider artificial intelligence industry will weather upheaval at Nvidia Corp.
MSCI's emerging market equity index is up more than 3% this week, with South Korea and Taiwan's AI-dominated benchmark stock gauges gaining. An index for EM currencies was little changed on a weekly basis, while Bloomberg's dollar spot index was up 0.6%.
While the ouster of Nvidia Chief Executive Officer Jensen Huang casts a pall, investors have also piled into Anthropic PBC's initial public offering in a sign of confidence in the AI industry. Shares of chipmakers Samsung Electronics and SK Hynix climbed this week on expectations that demand will continue to be strong.
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“The firm underlying demand for chips continues to be a main pillar for emerging markets in Asia, especially the semiconductor exporting powerhouses of Taiwan and South Korea,” said Homin Lee, senior macro strategist at Lombard Odier in Singapore.
Fears of weaker chip demand have proved short-lived as investors expect the broader AI ecosystem to absorb any excess capacity, he said.
Elsewhere, currencies of oil importers the South Africa, Philippines and Thailand underperformed peers as crude prices held gains after US President Donald Trump said that the US could forgo a deal with Iran, dimming hopes of a breakthrough to end the war.
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Hungary's 10-year domestic bond yields are set to converge toward the levels seen in regional economies that already use the euro, Debt Management Agency CEO Gergely Tardos said Friday.
Zimbabwe is taking steps to rebuild its domestic bond market after stabilizing the gold-backed ZiG currency and bringing inflation down to single digits following years of economic turmoil.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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