EM stocks set for best month since September on China boost

Chinese shares have largely shrugged off the raft of economic data published Monday, though sentiment in the broader emerging market space has improved amid views that President Donald Trump’s tariff may not be as severe as initially expected.

Emerging market equities are set to extend their best monthly performance in six months as a rebound in Chinese shares gain momentum on more fiscal measures.

The MSCI Emerging-Market Index has risen nearly 3% in March, on track for the largest monthly advance since September, driven mainly by advances in Chinese equities. After a DeepSeek-fueled rally, investors are awaiting details from a planned briefing on efforts to revive consumption that would help sustain further gains in the local market.

There are signs that domestic demand is picking up, with retail sales and industrial output rising faster-than-expected for the January-February period. Officials from the finance and commerce ministries, the central bank and other government bodies plan to hold a press briefing Monday on consumption measures.

The latest efforts reinforce China’s priority to boost consumption and “this could help to broaden out the momentum we have seen in China stocks this year, primarily led by tech,” said Charu Chanana, chief investment strategist at Saxo Markets. “An improving earnings outlook could see broader participation from consumer, travel and health-care names,” she added.

Chinese shares have largely shrugged off the raft of economic data published Monday, though sentiment in the broader emerging market space has improved amid views that President Donald Trump’s tariff may not be as severe as initially expected. A slump in the greenback in March also boosted emerging market stocks and currencies, with the MSCI EM currency index rising by 0.9% this month, the largest monthly gain since September.