Emerging-market stocks pushed to a record high as currencies across the asset class also climbed, driven by rising optimism that the US and Iran are edging closer to a peace deal. The rally reflects investor confidence that diplomatic progress between Washington and Tehran could ease geopolitical risk premiums that have weighed on the region.

Currencies in emerging economies gained alongside equities as traders positioned for reduced Middle East tensions. Central banks have welcomed stronger currencies, which can help contain imported inflation. Investors have been watching for any concrete signals of de-escalation between the two nations.

For emerging-market equities, the record push higher signals risk appetite is returning to the asset class. The trend hinges on whether US-Iran negotiations produce a tangible agreement that reshapes regional dynamics.