Emerging Markets Surge on China Stock Gains Amid Trump Presidency Concerns

An index tracking emerging market equities climbed due to a Chinese stock surge. Investors were wary of Trump presidency implications, affecting currencies. Central European currencies saw slight gains, while analysts foresee possible challenges from U.S. tariff plans. China continues to project an open economy amid uncertainties.

On Thursday, stocks in emerging markets made a comeback, influenced by a rally in Chinese shares. Investors set aside currency losses as they assessed the potential impact of a second Donald Trump presidency in the United States. MSCI's emerging markets stocks index rose by 0.6%, reclaiming nearly all of Wednesday's losses, as significant Chinese benchmarks reached one-month highs, closing up 2.6% and 3%, respectively.

Attention has now shifted to the conclusion of the National People's Congress Standing Committee meeting, with anticipation of potential stimulus announcements that could bolster market sentiment in China. October's robust export data from China further supported gains.

Following a risk-averse sentiment on Wednesday, driven by concerns over a Trump presidency that may escalate trade tensions and affect the global economy, investors remain cautious. Vladimir Miklashevsky, an independent analyst, anticipates favorable numbers from China as companies increase purchases in anticipation of future tariff hikes. Meanwhile, central and eastern European currencies slightly strengthened, with Hungary's forint and Poland's zloty both rising modestly. Analysts warn that Trump's tariff policies could negatively impact Europe's emerging east, heavily reliant on export demand.

(With inputs from agencies.)