Dollar Weakness Draws Global Investors Back to Emerging-Asia Stocks
POINT The U.S. dollar's rally has paused , leading to renewed capital inflows into emerging-Asia stocks. Trump’s tariffs are less aggressive than expected , easing investor concerns. $700M flowed into Asian emerging markets (excluding China) in the last five days , reversing seven weeks of outflows. The MSCI Emerging Asia ex-China Index rose 1.8% last week , still undervalued at 15x forward P/E vs. 22x for the S&P 500 . AI-driven optimism and rate-cut expectations further support the region’s recovery. Details: Why Are Global Investors Buying Emerging-Asia Stocks Again? source : bloomberg 1️⃣ Weaker Dollar Boosts Emerging Markets Bloomberg’s Dollar Index has dropped over 3% from its February peak , → A weaker dollar reduces import costs for emerging economies and → Gives central banks more flexibility to cut interest rates and boost growth. 2️⃣ Trump’s Tariff Threats Are Easing Earlier this month, Trump proposed 25% tariffs on Canada & Mexico , but later delayed them ...