Emerging Market Stocks Rise as Nvidia Earnings Spark Global Relief Rally
Emerging market stocks climbed on Thursday, joining a global relief rally following Nvidia’s strong earnings report, which eased investor concerns over a possible tech sector bubble. MSCI’s Emerging Markets Index rose 0.9%, supported by gains in Taiwan and South Korea, as optimism returned to technology shares.
Nvidia’s better-than-expected results and upbeat forecast reassured investors that demand for artificial intelligence (AI) technology remains solid despite earlier fears of overvaluation. Those concerns had weighed on global markets earlier this month, pushing the MSCI index to a one-month low.
Adding to the positive sentiment, U.S. officials told Reuters that Washington might delay the introduction of new semiconductor tariffs, reducing immediate pressure on the sector.
Investors Monitor Geopolitical and Central Bank Developments
Market participants also focused on diplomatic efforts to end the war in Ukraine. Reuters reported that a draft peace framework proposed Kyiv give up certain territories and some weapons, signalling potential progress in negotiations. Ukrainian bonds gained for a second consecutive session, with key notes rising about 0.7 cents to reach two-week highs.
“Although there isn’t yet solid evidence of a breakthrough, markets view these talks as increasing the chances of movement toward a settlement,” said Chris Turner, global head of markets at ING.
Meanwhile, MSCI’s emerging market currencies index remained near a two-week low, as traders awaited the delayed U.S. September jobs report, expected to guide the Federal Reserve’s next policy move.
Regional Highlights: Rate Decisions and Earnings
In South Africa, the rand slipped 0.1% ahead of the central bank’s policy announcement, with investors expecting a possible 25-basis-point rate cut to 6.75%. Yields on the benchmark 2035 bond remained steady. President Cyril Ramaphosa is set to address the G20 Business Summit later in the day.
China’s yuan was stable after the People’s Bank of China left lending rates unchanged, while Egypt’s pound also held firm before its own rate decision.
Earnings updates influenced markets across central and eastern Europe. Shares in Poland’s Allegro fell 4% after the company reduced its annual sales volume forecast. However, insurer PZU jumped 4.4% on stronger third-quarter profits. In Prague, Colt CZ Group declined 2.6% after cutting its full-year outlook.
While some caution remains over tech valuations and global economic uncertainty, Nvidia’s robust earnings have given emerging markets a short-term boost, reinforcing investor confidence in the resilience of technology-led growth.
with inputs from Reuters