Emerging-market stocks and currencies climbed on Monday after Friday's unexpectedly weak US employment report eased expectations for Federal Reserve rate hikes. An MSCI gauge of developing-market stocks rose 0.7%, on track to erase all of last week's losses, while an index of emerging-market currencies gained 0.2% for a fourth straight day of advances, led by Indonesia's rupiah. The moves came even as Brent crude traded above $84 a barrel amid tensions involving Iran, Oman, and Houthi militants. Wee Khoon Chong, senior Asia Pacific market strategist at BNY in Hong Kong, said the strength in emerging-market currencies was mainly driven by last week's drop in the US dollar, and that US CPI data due later this week will be the key catalyst for near-term dollar and EM currency moves. The MSCI Emerging Markets Index of stocks is now up for August after a two-month loss, with Taiwan Semiconductor Manufacturing Co., Delta Electronics Inc., and SK Hynix Inc. among the top contributors.
