Emerging Stocks Gain for Second Day on Earnings, Rate-Cut Bets

Developing-nation stocks climbed for a second day on Tuesday as the prospect of interest rate cuts by the Federal Reserve and optimism about earnings boosted risk sentiment.

The MSCI benchmark EM equity index ended the day 0.7% higher and has now clawed back all of last Friday’s losses when weak US data sparked a steep selloff. EM equities have posted returns every month this year with year-to-date gains approaching 16% amid inflows into the asset class.

The MSCI’s gauge for developing currencies slipped 0.1% as US President Donald Trump’s tariff threats hit the Indian rupee and the outlook for easing ...