Emerging-Market Stocks Surge to Longest Rally Since 2003
Emerging-market stocks are surging, notching their longest rally since 2003, boosted by heavy investment into Asian tech and a strong comeback in various markets. The MSCI benchmark for developing nations has risen another 0.4%, pushing its monthly gain to 6.9% and potentially marking its ninth consecutive monthly advance on the stock market today.
The rally is being driven by heavy global investment into Asian tech companies, with foreign investors piling into AI-related stocks, widening the valuation gap between Asian and U.S. firms. Small caps, which were crushed in the 2022 bear market, have also seen optimism return, leading to their longest weekly winning streak in almost five years. Meanwhile, the Russell 2000 Index finally clawed back to an all-time high, four years after the last one on the stock market today.
Emerging markets such as China, Poland, Mexico, and Argentina have particularly distinguished themselves. Poland's stock market rose over 35%, China's major indices rose more than 30%, and Mexico's IPC and ETFs gained around 32% in 2025 on the stock market today. This performance is supported by economic growth, easing trade tensions, and potential supportive monetary policies like expected US interest rate cuts. Hong Kong-listed heavyweights like Alibaba Group, Tencent Holdings, and TSMC are driving most of the upside in emerging-market stocks on the stock market today. In Israel, the TA-35 Index hit a record high following a Gaza ceasefire plan announcement by Trump and Netanyahu. Additionally, Kuwait re-entered international bond markets, and Egypt issued a new sukuk benchmark, adding to the activity across global credit markets on the stock market today.
Despite some pullbacks, such as the $5.4B withdrawn from the Russell 2000 ETF this year, emerging-market stocks continue to rise, with the potential for a ninth consecutive monthly advance on the stock market today. The strong performance of various emerging markets, driven by tech investment and favorable economic conditions, signals a robust global recovery on the stock market today.
