Emerging-market assets and precious metals are extending a storming start to 2026 as tensions between the US and Europe weigh on the dollar and re-energize diversification flows around the world. Most Read from Bloomberg The MSCI Emerging Markets Equity Index rose for a second day Friday and notched a fifth straight week of gains — its longest winning streak since May. The gauge is up about 7% this year, outpacing the S&P 500’s roughly 1% advance. Asian technology shares have underpinned the rally, whi ...

Group 1 - Currencies from Brazil, South Africa, and Mexico outperformed other emerging-market currencies as trade concerns eased, with thin trading volumes due to the US bond market being closed for a holiday [1] - Investor appetite for riskier assets increased, with the Brazilian real and South African rand each climbing 1.3%, supported by higher commodity prices and indications of potential trade negotiations between the US and China [2][3] - The Chilean peso and Peruvian sol also performed well as copper prices rose, with China's imports of copper and iron ore reaching their highest levels this year in September [4] Group 2 - Despite a rebound in the Brazilian real after a nearly 3% selloff, it is expected to remain under pressure due to fiscal concerns related to government efforts to expand social benefits ahead of 2026 [5] - Currencies from Eastern Europe faced pressure, influenced by the common currency and political instability in France, while the Israeli shekel lagged due to expectations of a peace deal with Hamas [6]