The movement of the US dollar and undervaluation are driving the emerging markets to pump. Trump's inflation policy is a boost.

Jin10 data reported on October 10, Federated Hermes' global emerging markets head Kunjal Gala stated that the dollar's movement, driven by President Trump's trade and foreign policies, provides a tailwind for the potential revaluation of emerging markets. In a report, he pointed out that emerging markets have risen 28% so far this year, driven by various factors. Global investors have maintained a relatively low exposure to emerging markets, and these markets were trading at a 40% to 50% discount compared to developed markets at the beginning of this year. Furthermore, investor sentiment has significantly reversed for previously underperforming markets like South Korea. He also added that the rebound in precious metal commodities and the prospect of global interest rate cuts are further propelling those emerging markets where real interest rates remain very high.

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