Emerging Assets Advance as Powell Remarks Fuel Risk Sentiment

Emerging-market assets rebounded on Tuesday as investors weighed remarks on policy from Federal Reserve Chair Jerome Powell and digested a de-escalation in Middle East tensions.

The MSCI index of emerging-market currencies rose more than 0.6%, with currencies from South Korea, Chile and Malaysia leading the rally. The dollar, meanwhile, edged lower alongside yields for 10-year Treasuries. A companion emerging-market index for equities clocked its biggest one-day jump since April, led higher by shares listed in Taiwan.