Emerging Markets Show Potential for Annual Gains

Emerging markets stocks and currencies are poised for annual gains despite subdued performance, with the MSCI gauge of emerging market stocks on track to snap a two-year losing streak and gain nearly 7% for the year. The United States Federal Reserve's dovish stance and positive economic data have fueled investor expectations for rate-cuts, with the December quarter being the best performing period for stocks and currencies index. China's yuan rose to a seven-month high, while Turkey's lira weakened, marking one of the worst-performing emerging market currencies. Central and Eastern Europe currencies were little changed against the euro, with the Hungarian forint set for a 4% annual gain. In South America, a national strike in Argentina is looming as opposition to the government's economic overhaul grows.