A gauge for emerging market stocks started the week on a firm footing on Monday, lifted by gains in China shares, while Turkey’s lira weakened against the dollar on worries of galloping inflation. The lira weakened as far as 16.57 to the greenback, bringing it close to record lows hit in December, 2021 in a currency crisis triggered by a series of unorthodox interest rate cuts.
Beijing and Shanghai have been returning to normal life following the biggest Covid-19 outbreak in two years, while measures to revive economic growth have also helped to lift risk sentiment. Investors prepared for a busy week, packed with central bank policy meetings as inflation takes centre stage amid a major European Central Bank meeting and US consumer price data.