South Africa’s rand soared, government bond yields tumbled and stocks jumped the most in six years as investors piled back into emerging-market assets that were worst-hit by the Middle East conflict.
The rand had weakened most among emerging-market currencies since the start of the war through Tuesday, falling more than 5% against the dollar.
On Wednesday, South Africa’s currency led gains as it surged as much as 2.6%, the most on an intraday basis since November 2023.
The benchmark government 10-year bond yield plunged 47 basis points, the most since March 2020, while the Johannesburg equity index climbed more than 5% as beaten-down mining stocks surged.
The stronger demand for developing-nation assets is part of a global relief rally spurred by a two-week ceasefire agreement that’s expected to result in the reopening of the Strait of Hormuz. Investors who had sold off risky assets as the war dragged on are
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Start your free trial today.
Start your FREE trial nowNeed help? molokom@insideeducation.co.za
