Investors are stepping up bold wagers on Hungary’s stocks, bonds and currency ahead of elections that could redefine the country’s future.
Hungarian assets have become a popular emerging-markets trade as money managers position for the possibility that opposition party Tisza beats veteran Prime Minister Viktor Orban, one of President Donald Trump’s closest allies in the European Union.
The BUX stock index has jumped 16% in January, its best month in five years. Even with the election outcome too close to call, the forint is trading near a two-year high against the euro, while the extra yield investors demand to hold Hungary’s bonds over similar German bunds has shrunk by 1 percentage point since June.
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