Emerging markets bounced 5 percent on Tuesday, adding to gains of over 7 percent made in the previous session, as investors welcomed global plans for bank bail-outs.
"The credit and money markets are finally responding favorably to government intervention," said Akber Khan, director of LatAm equity focus at Deutsche Bank.
"The next phase for emerging markets could see the IMF becoming a far more active lender -- with US$200 billion in capital and a further US$50 billion in credit lines, the IMF stands in a strong position from which to provide precautionary funding to a range of countries."