Emerging‑market equities and currencies nudged higher in thin holiday trading after reports that the United States, Iran and regional mediators were negotiating a 45‑day ceasefire. The MSCI emerging markets index for stocks climbed as much as 0.7%, while the corresponding currency gauge rose about 0.3%. Investors seized on the de‑escalation signal despite limited liquidity.

Asian markets reacted unevenly; the South Korean won outperformed peers, gaining roughly 0.4% as oil prices retreated from earlier gains. Traders watched the Strait of Hormuz, hoping that restored vessel traffic would ease oil‑price pressure. The rally followed a steep March sell‑off that had driven risk premia to elevated levels.

Regional central banks have been forced to intervene, defending currencies against a firming dollar and soaring energy costs. The Indian rupee, Philippine peso and Indonesian rupiah each slipped to fresh lows last month, underscoring how oil‑price volatility can strain emerging‑market balance sheets and dampen growth forecasts.

With several major exchanges closed for holidays—including China, London, Hong Kong and Australia—liquidity remained thin, amplifying price moves. The tentative ceasefire talks have already lifted risk sentiment, but any reversal could swiftly erase gains. For now, investors appear to be pricing in a modest de‑risking bounce.