The Federal Reserve's surprise decision to leave its extraordinary monetary stimulus program unchanged has given emerging market assets a shot in the arm, with strategists now forecasting a multi-week rally.
"In terms of emerging markets, this outcome is possibly as positive as you're going to get. People weren't expecting to see the Fed as dovish as they were," Chris Weston, chief market strategist at IG Markets told CNBC on Thursday.
(Read more: No taper! Did Bernanke fool the Street?)
"We're in for a good couple of weeks for emerging market currencies and equities," he said.
Indonesia's Jakarta Composite surged 7 percent, while the Philippine Stock Exchange index gained 3.6 percent. Meanwhile, currencies including the Indonesian rupiah, Malaysian ringgit and Korean won rallied between 1-2 percent against the U.S. dollar early Thursday, a far cry from a few weeks ago, when investors were aggressively dumping emerging market assets on their deteriorating economic fundamentals.
In an unexpected turn of events the U.S. central bank defied expectations, keeping its $85 billion-a-month bond buying program intact. Most major Wall Street banks and firms expected the Fed to pare back its monthly asset purchases by $10 billion to $15 billion.