Emerging market stocks edge higher on tech boost; Romanian politics in focus
SPY•Emerging-market stocks rose 0.9% on Wednesday, supported by gains in Asian technology shares, while investors welcomed the end of Romania’s political deadlock. Indonesia’s central bank kept its main policy rate unchanged, and South African officials were expected to present an improved fiscal outlook in a mid-year budget review.
1. Tech stocks support markets
MSCI’s emerging-markets equity index rose 0.9%, supported by strong gains in South Korean, Taiwanese and Hong Kong technology stocks after SpaceX results reflected strong demand for the technology.
2. Policy and politics in focus
Indonesia’s central bank kept its main policy rate unchanged, raised its deposit facility rate and said it would cut commercial banks’ reserve requirement ratio in stages. Indonesian shares recovered from earlier losses to rise 0.3%, while the rupiah dipped 0.1% to a record low of 18,000 per dollar. Romania confirmed Luca Niculescu as prime minister, ending months of political uncertainty; its BET index dipped 0.7%.
3. Fiscal outlook and bonds
South Africa’s rand fell 0.2% after September inflation rose more slowly than expected. Investors were watching the mid-year budget review, where the finance minister was expected to present an improved fiscal outlook. Ukrainian bonds rose for a second day ahead of talks between US special envoy Steve Witkoff and Russian President Vladimir Putin.
