EMERGING-MARKET STOCKS RISE ON AI DIP-BUYING AFTER MONDAY SELLOFF

Emerging-market stocks recorded their largest rise in two months as investors purchased artificial intelligence shares at lower prices following Monday's selloff. South Korea led the rebound across developing nations. Developing-nation currencies also advanced during the same period. The gains came as Iran and Israel paused hostilities, contributing to a broader improvement in market sentiment.

The rally reflected renewed investor appetite for AI-linked equities after the previous session's decline pushed valuations lower. South Korea's market, which carries significant exposure to technology and semiconductor stocks, led the recovery among emerging economies. The simultaneous advance in developing-nation currencies added to the positive picture across emerging markets. Dip-buying — the practice of purchasing assets after a price fall — drove much of the trading activity on the day.

The performance of closed-end funds with diversified holdings and exposure to lower-priced AI stocks has drawn attention alongside the broader emerging-market rebound. Such funds have recorded strong returns relative to the wider market, according to available data. The combination of AI stock volatility and geopolitical developments in the Middle East continued to influence trading conditions across global markets. Investors tracked both the Iran-Israel ceasefire and technology sector movements as key variables shaping emerging-market performance.