Emerging-market assets surged broadly on Thursday as investors priced in a reduced probability of wider Middle East conflict following signals of potential Iran war resolution. The MSCI Emerging Markets Index climbed more than 2%, with developing-world currencies advancing in tandem against a weakening dollar. The move reflected a broad risk-on rotation rather than country-specific catalysts, with the dollar's retreat amplifying gains across EM currency pairs and local-currency bond markets simultaneously. The mechanism is straightforward: geopolitical risk premiums built into EM assets during periods of Middle East tension compress rapidly when conflict escalation scenarios lose credibility, releasing pent-up demand from investors who had held underweight positions. Dollar weakness compounds that dynamic by lowering the effective cost of dollar-denominated EM debt service and improving the relative yield attractiveness of local assets. Traders will now watch whether the diplomatic signals that triggered the rally solidify into verifiable de-escalation steps, or whether the move fades if details remain thin. Any reversal in dollar direction or renewed conflict headlines would be the primary near-term risks to monitor.
Indian startups raised $5.2 billion across 501 deals in H1 2026, down 9% in value but up 7% in deal count year-on-year, per the Inc42 Indian Tech Startup Funding Report. The drop is driven by fewer mega-rounds, while AI funding surged 317% and growth-stage deal activity hit a multi-year high.
The BSE Sensex fell 893 points and the Nifty 50 shed 279 points on June 30, 2026, wiping out roughly Rs 6 lakh crore in investor wealth in a single session. Both indices dropped 1.16%, closing at 76,200.68 and 23,824.10 respectively.
Kotak Mahindra Bank shares fell nearly 3% to Rs 397.6 after CEO Ashok Vaswani announced plans to exit the bank. Investor concern now centres on succession timing and whether the bank's ongoing digital and deposit-growth strategy will stay on track.
South Korea's Kospi dropped 3% at Monday's open while Japan's Nikkei fell 1%, as escalating US-Iran conflict triggered a broad risk-off move across Asian markets. South Korea's heavy reliance on Middle East oil imports makes it especially vulnerable to geopolitical shocks of this kind.
