Emerging Stocks Rally as Alibaba Surges on AI Revenue Boost

The MSCI EM Index rose 0.7% as Alibaba jumped 19% in Hong Kong — the most in three years — after the Chinese e-commerce giant reported a triple-digit percentage gain in AI-related product revenue as well as a better-than-anticipated 26% jump in sales from the cloud division. The rupiah rose the most against the dollar in Asia after Bank Indonesia stepped in to defend the currency following political unrest over the weekend. “While we think such unrest is likely to be short-lived, investors will no doubt de-risk or increase hedges on their Indonesia portfolios,” Wee Khoon Chong, senior strategist for BNY Mellon in Hong Kong, wrote in a note.