Dubai: Just as investors were beginning to ponder if emerging-market assets have risen too far, too fast, the spotlight shifts to central banks.

Traders will be keeping a close eye on how policymakers from Thailand to Brazil will react to the Federal Reserve’s dovish turn. Some may be encouraged to shift away from further rate increases, according to TD Securities, and India’s central bank could become the first among Asia’s major economies to cut rates since the tightening cycle in the region began in 2017.

The recent rally “has more legs to run,” said Mitul Kotecha, a senior emerging-market strategist at TD Securities in Singapore. “But given how much markets have already re-priced in terms of US rate markets and ongoing trade risks against the background of slowing growth, the rally in emerging markets faces many headwinds.”