All the same, an index tracking emerging-market currencies notched up its fifth straight weekly advance after rallying in previous sessions on optimism over progress in US trade talks.
Stocks, meanwhile, advanced 3% in the week, taking the MSCI EM equities index to its highest level since October.
Assets across the developing world dipped Friday after the latest data showed that US consumer sentiment unexpectedly fell to the second-lowest level on record, while inflation expectations climbed to multi-decade highs amid growing concerns about tariffs. The dollar rose on Friday following the weaker data, with the Bloomberg dollar index rising 0.2%.
“The last few days of announcing deals and easing tensions with China have still left traders and investor wondering whether the US economy and the dollar will be stable and reliable long-term,” said Juan Perez, director of trading at Monex USA.
In Asia, tech companies including Alibaba Group Holding Ltd. and Tencent Holdings Limited led losses across the region as first-quarter earnings rolled out, with Alibaba shares plunging by the most in more than a month Friday after disappointing investors with lower-than-expected earnings.
Despite the volatility, Bank of America Corp.’s Michael Hartnett is betting on emerging-market stocks, saying that equities in the developing world are “the next bull market” as they benefit from a weaker dollar and an economic recovery in China.
