MSCI Emerging Markets Index has risen 5% over four days, but currency returns have hardly moved. What exactly are investors betting on?

CryptoWorld News reports that driven by the AI (artificial intelligence) boom, emerging-market stock markets have risen for the fourth consecutive trading day, with the Korean stock market hitting a historic high. The MSCI Emerging Markets Equity benchmark index rose by 0.5%, mainly led by electronics manufacturers listed in Seoul, thereby expanding the index’s cumulative gain over the past four trading days to 5%. Meanwhile, the corresponding index measuring emerging-market currency returns rose by less than 0.1%. Although the next stage of US-Iran negotiations remains full of uncertainties, after multiple markets observed a long-weekend holiday, Asian stock markets have still continued their previous uptrend. Karen Ward, a strategist at JPMorgan Asset Management, analyzes that global investors have shifted their focus beyond current geopolitical concerns and toward investment opportunities that could result from increased public-sector, military, and corporate spending worldwide.