Rally 2.0 underway for emerging markets as stocks add $8 trillion

The much-awaited rally 2.0 in emerging-market stocks may already be under way.

Investors’ risk appetite got a boost after Joe Biden’s US presidential win and successes in vaccine development, pushing the benchmark MSCI gauge toward its best month since March 2016.

The emerging-market equity rebound since the coronavirus rout in March is now worth $8.3 trillion, meaning more shareholder wealth has been added in the past eight months than in the two- year rally beginning 2016. When the earlier advance was halted by US-China trade tensions in January 2018, most money managers called it an interruption rather than the end of the