Source: Global Market Broadcast
Emerging market stocks rose for the ninth month in a row, the longest consecutive increase since 2004, thanks to accelerated capital inflows and the continuous influx of investors into Asian technology stocks.
The rally continued on Tuesday, with MSCI’s index measuring the performance of developing countries closing up 0.5%, pushing the return rate since September to 7%. Alibaba and Tencent listed in Hong Kong, as well as chip maker TSMC, contributed the most to the index’s rise.
Investors basically ignored Tuesday’s report that there was little increase in job vacancies in the United States in August, while paying attention to signs that the US government might shut down. The rebound in emerging markets was driven by expectations of a weaker dollar, interest rate cuts by the Federal Reserve and signs of improvement in the China market.
"Nothing goes straight up and there is no fluctuation," said Malcolm Dorson, senior portfolio manager of Global X Management. "But we may be seeing the beginning of a new cycle in emerging markets."
