Chip designer Shanghai Biren Technology Co. Ltd. surged in its Hong Kong trading debut, while Baidu Inc. climbed after its AI chip unit confidentially filed for an initial public offering. Latin American equities also moved higher on Friday, though the sub-index for the region was up just about 0.5%.
The MSCI Emerging Markets Currency index, meanwhile, showed little direction as traders focused on expectations for Federal Reserve easing. Brazil’s real surged almost to 0.9%, leading gains, while Mexico’s peso and the South African rand, bellwethers for risk appetite, advanced around 0.6% each.
The Argentine peso was one of the weakest performers in the developing world, declining more than 1% at the start of a new exchange-rate regime. The changes, which took effect today, allow the peso to trade within a band whose upper and lower limits will widen at a faster pace, increasing the scope for potential depreciation.
In credit markets, Colombia’s short-term swaps rose after the Labor Ministry said the government is mulling measures to prevent inflation, including price controls.
Senegal’s dollar bonds led gains among global EM peers after the country’s finance minister indicated progress toward a new credit facility with the International Monetary Fund.
