Emerging market stocks have rallied in the past week, amid a rising oil price, recording seven consecutive days of gains.
The MSCI Emerging Market Index has seen gains over the past seven days, wiping out the losses it made at the start of the year. The index now stands at 795.92, up 0.1 per cent on the year’s start.
The index hit a year-low in January, when it dropped to 686.7, a significant fall from the high in April last year of 1,069.13.
The rally in oil to over $40 a barrel has helped emerging economies, while iron ore has also risen and boosted the countries.
The recent jobs data from US has also hinted at a slower trajectory of rate rises in the country, providing some relief for emerging markets.
In addition, the political problems surrounding the Petrobras scandal is starting to see progress.
Former president Luiz Inácio Lula da Silva has been detained by Brazilian police to be questioned about his part in the Petrobras corruption scandal, giving hope that the political stalemate surrounding the scandal may be easing.
However, the MSCI Emerging Market Index is still down almost 19 per cent over the past year.