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Updated February 23rd, 2024 at 15:26 IST

Emerging market stocks set for fifth weekly gain amid Nvidia's success

MSCI's index for emerging market stocks remained steady at 1,029.34 points, indicating a weekly rise of over 1%.

Reported by: Business Desk
Japan's Nikkei rebounds
Emerging market stocks | Image:Pexels
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Emerging market stocks are set for their fifth consecutive weekly increase, driven by a resurgence in Chinese shares and positive sentiment following the outstanding performance of US chipmaker Nvidia.

MSCI's index for emerging market stocks remained steady at 1,029.34 points, indicating a weekly rise of over 1 per cent. The upbeat results from Nvidia have reverberated across various sectors and asset classes, boosting investor confidence not only in the tech industry but also contributing to a broader risk-on sentiment.

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According to Charu Chanana, head of FX strategy at Saxo Markets, the market's reaction to Nvidia's success is remarkable, underscoring its impact on different sectors. Chinese shares, which returned from a week-long holiday, experienced significant gains, supported by policymakers' measures to bolster investor confidence in the world's second-largest economy.

Fresh data indicating a slowdown in China's new home price declines in January, particularly in major cities, further contributed to the positive market sentiment. In Europe, most bourses opened positively, with Turkish shares and Bucharest shares recording gains. However, regional currencies faced pressure, with Hungary's forint emerging as the worst performer among its peers.

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The Romanian leu held steady ahead of the release of minutes from the central bank's recent policy meeting. Meanwhile, Poland's zloty weakened following an increase in the country's unemployment rate, while the Czech crown slipped against the euro. South Africa's rand also depreciated against the dollar, reaching a near four-month low amid declining bullion prices.

(With Reuters inputs)

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Published February 23rd, 2024 at 15:26 IST

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