Emerging-Market Assets Rally on Iran War Resolution Bets

Emerging-market stocks and currencies rallied on Tuesday, bringing a key equity gauge close to erasing losses from the start of the Middle East conflict in late February, as speculation over renewed US-Iran peace talks lifted investor sentiment.

The MSCI Emerging Markets Index rose nearly 2% to its highest level since March 3, while most developing-world currencies also advanced amid a weaker dollar. The Israeli shekel led gains as hopes for a resolution gained traction among traders.