Emerging Market Assets Rally Ahead of U.S. CPI Report; Benchmark Currency Index Up 0.5% on Tuesday

On Tuesday, emerging market assets surged, with Asian tech stocks rebounding strongly after early-week losses and emerging market currencies appreciating against the weakening U.S. dollar. The benchmark emerging-market currency index gained 0.5% on the day, snapping a five-day losing streak.

Traders are focused on Wednesday's U.S. CPI report, which will likely determine whether markets price in increased odds of Fed rate hikes later this year.