Emerging market equities posted a solid 2.1% gain this week, outperforming developed markets as the U.S. dollar weakened and hopes for additional China stimulus lifted sentiment.
Key regional highlights:
Asia: Chinese stocks rallied 3% on property sector support measures. India's Nifty 50 hit new highs on domestic institutional buying.
Latin America: Brazil's Bovespa gained 2.5% as rate cut expectations firmed. Mexican peso strengthened on nearshoring flows.
EMEA: South Africa rallied on improved power generation. Turkey underperformed on inflation concerns.
The MSCI EM Index now trades at 11.5x forward earnings, a significant discount to developed markets at 18x.