Easing tensions between the US and Iran ignite an emerging market rebound as the MSCI Index ends its five-day losing streak

Golden Ten Data April 1｜Boosted by signals of easing tensions from the US and Iran, emerging market assets rebounded sharply. The MSCI Emerging Markets Index rose more than 3%, and a similar indicator tracking emerging market currencies also climbed 0.7%—both are poised for their first rise in five days. The willingness expressed by both Trump and Iranian authorities to de-escalate hostilities greatly lifted market sentiment. Michael Wan from Mitsubishi UFJ Bank wrote in a report that despite oil prices remaining elevated, risk appetite and a “recovery in Asian currencies” are already evident. He stated: “We remain cautious in our position allocation, as we are still skeptical about the path to achieving a lasting peace agreement.”