(Bloomberg) — Developing-nation stocks climbed as US President Donald Trump signaled a receptiveness to negotiate with countries on tariffs, boosting investors’ sentiment.
Most Read from Bloomberg
After saying there was “big progress” in negotiations with Japan, Trump said he will make “a good deal” with China and is confident in a trade agreement with the European Union. The president offered no time line for agreements with trading partners to be finalized, saying that they would happen “at a certain point” and insisting that other nations would need to make concessions.
Japan talks are being closely watched as a test case for other nations uncertain over what concessions Trump will seek to extract in order to soften or remove tariffs.
Listen to the Here’s Why podcast on Apple, Spotify or anywhere you listen.
A gauge that tracks emerging-market stocks rose 0.8% Thursday. A sister index for currencies gained as much as 0.3%, buoyed by the Mexican peso, which climbed 1.1%. Earlier, Trump posted on Truth Social that he had a productive call with Mexico’s President Claudia Sheinbaum on Wednesday.
“EM FX is benefitting from renewed hopes that tariff talks between the US and other regions can reach a resolution to disagreements over trade,” said Juan Perez, a foreign-exchange trader at Monex. “Emerging markets have a lot to gain from a more flexible White House.”
Eastern European currencies lagged peers, with the Hungarian forint and the Czech koruna among the worst performers.
Meanwhile, Turkey raised its one-week repo rate to 46% from 42.5%, a surprise move aimed at reassuring investors after domestic turmoil and worries over US tariffs triggered a selloff in the lira. The currency rose following the decision, and was one of the best performers against the dollar Thursday.
Egypt’s central bank cut its interest rate for the first time in almost five years, reducing the benchmark deposit rate by 225 basis points to 25%. The Monetary Policy Committee lowered the lending rate by the same amount to 26%.
–With assistance from Jorgelina do Rosario.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
