Emerging market stocks hit 5-year high on AI bets
Emerging market stocks just had their best one-day advance since October, with the MSCI Emerging Markets Index jumping 1.7%—its highest close since early 2021.
The big boost came from excitement around artificial intelligence (AI) in Asia, especially after Shanghai Biren Technology's impressive debut on the Hong Kong Exchange.
Why does this matter?
Biren's IPO was a standout: shares more than doubled on their debut, raising over $700 million and catching the eye of investors looking for the next big thing in AI chips.
This buzz is spreading to other Chinese tech firms, like Baidu's Kunlunxin unit, which has confidentially filed for its own IPO.
What's behind the surge?
As global interest in AI heats up, investors are shifting money into emerging markets for better deals after focusing heavily on US tech stocks.
Even Latin American markets got a lift, showing that AI hype is opening new doors beyond just Silicon Valley.