Market Gains Amid Trade Talks and Interest Rate Speculations

Emerging market equities appear ready to close October with gains despite a lackluster end-of-month performance. During October, equities surged 4.2%, fuelled by optimism around U.S.-China trade resolutions and potential Federal Reserve interest rate cuts.

The momentum stalled after trade talk outcomes and comments from Fed Chair Jerome Powell left investors without the expected stimuli. Powell indicated no guaranteed rate cut in December, dampening spirits. Nonetheless, dialogue between the U.S. and China is seen positively, according to Lazard Asset Management’s Rohit Chopra.

In regional news, South Korea posted its best monthly share gains since 2001, aided by a trade pact with the U.S. Meanwhile, China saw a dip in indices and continuing reduction in factory activity, highlighting varied performance across global markets.