“It now seems less likely that there will be an interest rate hike in September, so people will be looking for yield in emerging markets,” Cratos Capital equities trader Greg Davies told Reuters.
Leading the charge among the developing economies, the iShares MSCI South Africa ETF (NYSEArca: EZA) increased 2.5% on Friday.
SEE MORE: Political Turmoil Drags on South Africa ETF
South African markets were also rallying after experiencing a steep sell-off in response to ongoing political risks, with EZA down 7.1% over the past month. South African assets have been pressured by an investigation into whether Finance Minister Pravin Gordhan used a surveillance unit to spy on politicians when he was head of the tax service.
For more information on the developing economies, visit our emerging markets category.
iShares MSCI Emerging Markets ETF