New Delhi, March 21 -- The appetite for emerging markets (EMs) among global investors seems to be reviving, amid expectations of three interest rate cuts by the US Federal Reserve in 2024.

On Wednesday, the US Fed held the Federal Funds rate steady at 5.25%-5.5%, as expected. Fed chair Jerome Powell's commentary indicated that the recent high US inflation number and a strong labour market wouldn't push the central bank to delay rate cuts, bolstering investor sentiment for Asian equities on Thursday.

Interest rate cuts by the Fed tend to make the US dollar weaker, enhancing the appeal of EM equities. An easing monetary policy cycle means lower cost of capital and thereby willingness to take more risk. Collectively, these factors should i...