Emerging-market benchmarks for stocks and currencies extended their gains amid holiday-thinned trading, with the MSCI Emerging Markets Index climbing 0.2%. This rise was bolstered by stocks in the United Arab Emirates, particularly First Abu Dhabi Bank PJSC and ADNOC Drilling Co. The currency index also increased by 0.3%, driven by the Hungarian forint and Polish zloty. Despite the ongoing closure of the Strait of Hormuz and geopolitical tensions, analysts remain optimistic about the medium-term outlook for emerging markets. Cassidy Ainsworth-Grace, a macro strategist at Oxford Economics, noted that while tensions could escalate, the impact on global economic growth is likely to be limited. Earnings estimates for the MSCI index have reached record highs, prompting analysts to upgrade their target for the index, forecasting a 22% gain by April 2027. Additionally, Hungary disclosed details of a €1 billion ($1.2 billion) loan from China, which could influence market dynamics.