Emerging-market stocks hit two-week high ahead of Trump UN address

Emerging-market equities and currencies climbed on Monday after the United States and China offered upbeat assessments of weekend talks held ahead of a planned summit between President Donald Trump and Chinese President Xi Jinping later this week. Falling oil prices added further momentum, lifting investor sentiment across developing economies.

Trade Optimism Lifts Developing-Nation Assets

MSCI Inc.'s ↗ 1.24% gauge for developing-nation stocks ended Monday's session 1.3% higher, with Samsung Electronics, Taiwan Semiconductor Manufacturing Co. ↘ 1.20%, and MediaTek leading the gains, according to Bloomberg. A companion index for emerging-market currencies rose 0.1%.bloomberg

The rally followed roughly eight hours of discussions in New York between US Treasury Secretary Scott Bessent and Chinese trade officials over the weekend. Bessent called the talks "very successful," while China's delegation said the exchanges took place in a "good atmosphere," according to Al Jazeera. The two sides discussed a proposed US-China AI dialogue, including a notification system for incidents raising national security concerns, as well as a process for identifying non-strategic goods that could qualify for lower tariffs.aljazeera

Xi is expected to visit Washington on September 24, and markets appeared to be pricing in continued easing of trade frictions between the world's two largest economies.cnbc

Falling Oil Prices Add Fuel

Declining crude oil prices reinforced the positive mood. Brent crude fell for a fourth straight session on Monday, settling more than 3% lower near $100 a barrel, as signs emerged that Saudi Arabia was boosting exports through the Strait of Hormuz and fresh diplomatic efforts raised hopes for de-escalation in the Iran conflict, Bloomberg reported. The drop in energy costs tends to benefit oil-importing emerging economies by easing inflation pressures and improving trade balances.bloomberg

On Wall Street, the Nasdaq Composite rose to a record close on Monday, buoyed by the combination of US-China trade optimism and lower oil prices, The Wall Street Journal News Corp ↘ 3.58% reported.wsj

Markets Eye Trump at the UN

On Tuesday, emerging-market stocks extended their advance, with the MSCI EM stocks index rising 0.6% to nearly a two-week high as investors turned their attention to Trump's scheduled address at the UN General Assembly. Trump is set to speak Tuesday morning and hold bilateral meetings with leaders including Ukrainian President Volodymyr Zelenskiy and British Prime Minister, according to Reuters. Markets are watching closely for any signals on trade policy, the Ukraine conflict, and broader geopolitical dynamics that could shape the investment outlook for developing economies.reuters+2