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Bloomberg Quint
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Dollar Reprieve Brings Global Funds Back To Emerging-Asia Stocks
- Investors are showing increased interest in Asian emerging-market stocks as the dollar rally pauses and Trump's tariff threats appear less severe than feared.
- Money managers bought over $700 million of shares in Asian developing nations outside China, ending seven weeks of outflows.
- The MSCI index of regional equities excluding China saw a 1.8% return last week, suggesting a possible positive shift for the region's stocks.
- Asian emerging-market stocks, while having rebounded, still trade at relatively attractive valuations compared to the S&P 500 Index.
- The weakening dollar and potential rate cuts create a more favorable global environment for Asian economies heavily reliant on imports.
- Trade tensions are seen moderating, benefiting Asian economies, with signs that the period of dollar strength may be waning.
- Export-driven economies like South Korea have seen gains amid eased tariff fears and the launch of AI products boosting tech firms in Asia.
- The prospect of further tariffs from Trump remains a concern, but for now, investors are drawn to emerging-Asian stocks for their growth potential.
- Some fund managers have added exposure to ASEAN markets like Indonesia and the Philippines, seeing value in their growth and earnings potential.
- Despite lingering uncertainties, the current trend suggests a renewed interest in emerging-Asian equities driven by various positive factors.
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