{"id":134574,"date":"2025-10-20T19:53:10","date_gmt":"2025-10-20T19:53:10","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/134574\/"},"modified":"2025-10-20T19:53:10","modified_gmt":"2025-10-20T19:53:10","slug":"emerging-currencies-rise-on-signs-of-easing-us-china-tensions","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/134574\/","title":{"rendered":"Emerging currencies rise on signs of easing US-China tensions"},"content":{"rendered":"

A gauge tracking emerging-market currencies rose as traders welcomed signs of easing US-China trade tensions ahead of talks at the end of the week in Malaysia.<\/p>\n

The MSCI Emerging-Market currency index rose 0.2% on Monday (October 20), with the South African rand \u2014 often a measure of risk-appetite \u2014 outperforming peers with an advance of 0.7%. Latin American currencies, including the Brazilian real and the Chilean peso, also beat peers amid a weaker dollar.<\/p>\n

“We had some positive commentary from Trump signaling that high tariffs on China are not sustainable,\u201d said Brendan McKenna, an economist at Wells Fargo in New York. \u201cEM FX is taking that in its stride and rallying on the idea that the US-China relationship will not worsen come early November.”
\n<\/p>\n

\nAfter a fresh flare-up of trade tensions between Washington and Beijing last week, market sentiment improved after US President Donald Trump said that his threatened levy on Chinese goods was \u201cnot sustainable\u201d though \u201cit could stand.”<\/p>\n

Also Read: FTSE upgrades Vietnam to emerging market from frontier<\/a><\/strong><\/p>\n

While listing rare earths, fentanyl and soybeans as the top US priorities, Trump said he had a good relationship with the Chinese leader and expected a sitdown to happen in South Korea later this month.<\/p>\n

The market\u2019s base case seemed to be that China would concede its rare-earth export controls, which might allow an extension to the current tariff truce, Chris Weston, head of research at Pepperstone Group, said in a note. \u201cHowever, one does question whether markets misprice the risk that China may not back down,\u201d he added.<\/p>\n

The MSCI\u2019s equity index increased 1.7%, driven mainly by gains in shares of Taiwan Semiconductor Manufacturing Co., Tencent Holdings Ltd. and Alibaba Group Holding Ltd. The index is trading at its highest level since 2021.<\/p>\n

\u201cThere is good reason to expect the US-China spat to remain contained for now due to the strategic nature of the issues at stake,\u201d Barclays Bank analysts including Lefteris Farmakis wrote in a note.<\/p>\n

Also Read: Allspring\u2019s Paroda says Indian market set for stronger run as earnings improve, tariff noise fades<\/a><\/strong><\/p>\n

Traders will also monitor the release of the September consumer price index on Friday after being delayed by the US government shutdown. The data, originally slated for October 15, will give Federal Reserve officials a critical piece of information ahead of their policy meeting the following week.<\/p>\n

\u201cAside from the easing tensions between China and the US, we will finally get some data this Friday from the US,\u201d said Marco Oviedo, a strategist at XP Investimentos in Sao Paulo. \u201cThe market is not expecting much, in the sense that inflation should remain steady, and with the job market relatively weak, cuts from the Fed are still on the table. So the picture is relatively benign for EM.”<\/p>\n

Elsewhere, Israel\u2019s stocks and the currency rose after the nation said it had resumed a truce with Hamas in Gaza. The halt in fighting also helped lift Egypt\u2019s markets, with the country\u2019s dollar bonds posting the best gains among developing-nation peers.<\/p>\n

In Colombia, the nation\u2019s bonds and currency fell, denting their recent rally, after Trump accused his counterpart Gustavo Petro of being an \u201cillegal drug leader,\u201d triggering fears of economic retaliation.<\/p>\n

Also Read: India\u2019s stock market lags emerging peers at worst pace in three decades<\/a><\/strong><\/p>\n

Argentina\u2019s dollar bonds, meanwhile, initially rose after the nation\u2019s central bank and the US Treasury signed a currency swap line for $20 billion, a vote of confidence in President Javier Milei ahead of a crucial midterm election. But with details still scarce, bonds erased initial gains and the peso weakened.<\/p>\n","protected":false},"excerpt":{"rendered":"A gauge tracking emerging-market currencies rose as traders welcomed signs of easing US-China trade tensions ahead of talks…\n","protected":false},"author":2,"featured_media":134575,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[80410,79,80411,18,80412,80406,80413,5626,19,17,188,80407,80415,80414,80409,80416,27163,80417,80408,72340],"class_list":{"0":"post-134574","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-brazilian-real","9":"tag-business","10":"tag-chilean-peso","11":"tag-eire","12":"tag-em-fx-rally","13":"tag-emerging-market-currencies","14":"tag-emerging-market-forex","15":"tag-emerging-market-stocks","16":"tag-ie","17":"tag-ireland","18":"tag-markets","19":"tag-msci-emerging-market-currency-index","20":"tag-msci-emerging-market-equity-index","21":"tag-rare-earth-exports-china","22":"tag-south-african-rand","23":"tag-taiwan-semiconductor-shares","24":"tag-tariff-truce","25":"tag-tencent-stock","26":"tag-trump-china-tariffs","27":"tag-us-china-trade-tensions"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/134574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=134574"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/134574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/134575"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=134574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=134574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=134574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}