Emerging Markets Steady Amid Easing AI Trade Fears

Emerging markets managed to hold their ground on Tuesday as the AI-driven trade downturn showed signs of easing, while oil prices rebounded and investors awaited the release of US jobs data.

The MSCI emerging-market equities index slipped by just 0.2%, with its corresponding currencies gauge remaining relatively flat against a firm US dollar.

In South Korea, the KOSPI rose by 1.6% as investors returned to chip stocks, and some of the recent pullback in AI-related shares was attributed to leveraged positions being unwound rather than a decrease in spending.

However, concerns persist over whether the buildout of AI data centers is becoming overdone, potentially keeping market sentiment fragile.