Emerging markets got a lift from the Federal Reserve, Donald Trump and Xi Jinping to start the year. Oil may be the next saving grace.
Investors say a potential uptick in crude prices might be the latest tailwind for the developing world after the White House scrapped waivers tied to Iranian oil sanctions. Brent crude gained as much as 3.5% Monday and was close to reaching $75 a barrel Tuesday for the first time since October.
While there's no guarantee the gains will last, emerging-market assets have historically benefited from climbing oil prices. MSCI's EM currency index produced double-digit returns during the three biggest oil rallies this century.
Here are the six emerging markets with the biggest correlations, positive and negative, to crude prices.