Emerging market stocks gain on tech boost; currencies slip ahead of Fed decision
SPY•An index tracking emerging-market stocks rose 2% to a one-week high, helped by gains in South Korean and Taiwanese technology shares after SK Hynix reported record profit. Emerging-market currencies dipped ahead of the Federal Reserve’s expected decision to hold rates steady.
1. Tech shares lead gains
SK Hynix surged more than 10% after reporting a more than seven-fold jump in quarterly profit and saying it would return about $75 billion to shareholders this year. Samsung rose 9%, while Taiwan’s tech-heavy stock index gained 2%.
2. Currencies and regional markets
Israel’s stocks fell 3.3% and the shekel weakened 1.3% against the dollar after election results pointed to a potential political deadlock. South African stocks and the rand were little changed; Hungarian stocks lost 0.3%, while Romanian stocks gained 0.6%.
3. Fed and inflation watch
Investors were watching the Fed, which was widely expected to leave rates unchanged. Oil prices rose by more than $2 after an attack on a Saudi refinery, while higher energy costs and bond-market losses have reinforced expectations that central banks may keep policy restrictive for longer.
