Emerging stocks experienced a rally Monday, fueled by a surge in Alibaba Group Holding ltd. shares following positive signals regarding its advancements in artificial intelligence. The MSCI Emerging Markets Index climbed, with gains also seen in currencies like the Indonesian rupiah and the Polish zloty.
The rally comes as investors assess the economic landscape and anticipate key economic indicators later this week that could influence the Federal Reserve’s interest rate decisions.Alibaba’s progress in AI is particularly noteworthy as China continues to invest heavily in the technology, perhaps reshaping the competitive dynamics in the global tech sector.
In currency markets, the MSCI EM FX gauge remained relatively stable despite the Labor Day holiday in the US reducing trading volume.the rupiah strengthened against the dollar after bank Indonesia intervened to support the currency amid recent political unrest. “While we think such unrest is highly likely to be short-lived, investors will there’s no doubt whatsoever de-risk or increase hedges on their Indonesia portfolios,” noted Wee Khoon Chong, senior strategist for BNY in Hong Kong. Indonesian stocks also declined following the protests, while Thailand remains a focus for investors after the Constitutional Court’s decision regarding Paetongtarn Shinawatra’s premiership.
Poland’s economy received a boost from increased domestic demand in the second quarter, as revealed by data released Monday, contributing to gains for the zloty against the euro and dollar. Investors are also closely watching developments related to US tariffs, after a federal appeals court ruled most of President Donald Trump’s global levies illegal, though the tariffs remain in place pending further legal proceedings.
The focus will shift to upcoming economic data releases this week, which are expected to provide further insight into the federal reserve’s future monetary policy.
