Emerging market assets continue to soar: South Korea leading the way, weak dollar providing assistance.

The emerging market stock market has risen for the third consecutive trading day, with South Korea's assets continuing to lead the global rally following the end of the presidential election. The MSCI Emerging Markets stock index has risen by 2.4% over the past three days. The US dollar continues to be under pressure due to weak employment data, strengthening expectations for a dovish stance by the Federal Reserve, leading to a slight increase in the emerging market currency index. The South Korean Composite Stock Price Index (KOSPI) continued its upward trend, with the Korean won leading the emerging market currencies after two days of political vacuum following the end of the presidential election. Chris Turner, a strategist at ING, stated in a report that over the past month, the Korean won has outperformed high-yielding currencies in regions like Latin America, South Africa, as well as similar assets like the Czech koruna. Turner predicted that as the US and South Korea enter into trade negotiations, if market volatility requires the Korean won to strengthen, the South Korean authorities will follow the market forces. He predicts that the USD/KRW exchange rate will break the 1350 level. In other markets, Kazakhstan held its benchmark interest rate unchanged for the second consecutive meeting, showing caution regarding the possibility of a rate cut this year. The President of the Polish Central Bank will hold a press conference on Thursday to explain the decision to keep the interest rates unchanged the day before. Bulgaria's 10-year Euro bonds continued to rise, with yields decreasing, after the European Union's two major institutions finally approved the country's entry into the Eurozone in January 2026.