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Emerging market equities posted their largest single-day jump in nearly two decades on Friday, wrapping up a turbulent week and trimming their losses for the month. South Korea's benchmark index recorded a historic surge.

The MSCI Emerging Markets Index climbed 6.6% on Friday, its best daily performance since 2008, bringing its July decline down to 3.3%. South Korea's KOSPI composite index skyrocketed 18% on the same day.

Florian Ielpo, Head of Macro at Lombard Odier Investment Managers, commented:

"Following several weeks of correction, positions in Asian tech stocks have been partially cleared. So this rally looks more like short-covering than anything else at this point."

Goldman Sachs strategists, including Sunil Koul, noted that Friday's rebound aligns with their cautiously optimistic view on certain segments of the AI infrastructure space, where profit growth remains robust. However, they cautioned that volatility could persist:

"Because while leveraged positions have come down from their highs, they haven't been fully unwound yet."