Emerging Assets Surge to Multi-Year Highs on US-Iran Truce

Emerging-market assets from Asia to Latin America surged in a broad-based rally on Wednesday, notching their strongest session in years after a US–Iran ceasefire sent oil prices tumbling and unleashed a wave of global risk appetite.

The MSCI EM Equity Index leaped 5.5% in its best session since 2020, closing the day at its highest level since early March. Currencies also gained across the board, with the South African rand, the Hungarian forint and the Chilean peso advancing more than 2% each against the dollar. The Brazilian real also stood out, rising over 1.1% to its highest level in nearly two years.