India ETF Bucks Emerging-Market Stock Selloff On US Trade Deal

Group 1: Market Reactions - An index fund tracking Indian shares, the $9.4 billion iShares MSCI India ETF, experienced its largest gain since May, attributed to a trade deal with the US that will lower tariffs on Indian goods from 25% to 18% [1] - MSCI's gauge for developing-nation equities fell by as much as 2.9%, marking the most significant decline since April, while South Korean stocks saw a notable drop with the Kospi index down 5.3% [2] - The overall market selloff was influenced by a dramatic decline in various asset classes, including global equities and precious metals, following President Trump's nomination of Kevin Warsh to lead the Federal Reserve, which strengthened the dollar [3] Group 2: Currency and Bond Markets - MSCI's gauge for currencies decreased by approximately 0.4%, with the South Korean won underperforming, while Latin American currencies, particularly the Colombian peso, outperformed after a 100-basis point rate hike by the Colombian central bank [4] - Morgan Stanley strategists indicated that Trump's nomination of Warsh does not signify the end of the rally in emerging-market currencies and local bond markets, suggesting that investors should consider buying dips due to solid fundamentals [6] - Poland is planning a return to the Japanese bond market with a multi-tranche Samurai issue to meet its increasing borrowing needs, while Argentina is opting not to sell bonds in global markets due to access to alternative funding sources at lower interest rates [8]