(Bloomberg) -- Emerging-market stocks had their best day in nearly a year on Thursday, propelled higher by new stimulus pledges by the Chinese government and strong US economic data.

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MSCI Inc.’s EM stock index closed 2.3% higher — the most since November — to cap off a six-day winning streak. Tech companies including Tencent Holdings, Alibaba and PDD Holdings contributed the bulk of the index gains. The developing currency counterpart gained 0.1%.

The rally was ignited by a pledge from China’s top leaders for more fiscal spending, measures to stabilize the property sector and “forceful” rate cuts, signaling greater urgency to stem the slowdown in growth. The government also plans to issue 2 trillion yuan ($284.43 billion) of special sovereign bonds this year to stimulate consumption and help local governments with debt problems, Reuters reported.

Later in the day, revised data showed the US economy bounced back from the pandemic in stronger shape than previously estimated, while a decline in jobless claims highlighted the resilience of the labor market.

“Greater stimulus measures out of China and market pricing an aggressive Fed easing cycle, while the US economy is strong, bode well for risk assets,” Elias Haddad, a strategist at Brown Brothers Harriman, wrote in a note. “This encouraging risk backdrop is a drag on USD mostly against growth-sensitive currencies.”

Most emerging currencies gained, led by the Chilean peso, which was boosted by a rally in copper prices. The South Korean won and Colombian peso followed, while the Indonesian rupiah and Malaysian ringgit dropped.

“Improving risk appetite, optimistic US data coupled with the news of stimulus in China” are driving developing currencies up, said Maria Marcos, currency analyst at Monex Europe Ltd.

The Mexican peso briefly extended gains Thursday after the nation’s central bank lowered borrowing costs by 25 basis points to 10.5%, joining easing steps by Hungary and the Czech Republic earlier this week. The stage for further easing by emerging-market central banks was set by the Federal Reserve and the European Central bank this month.

In credit markets, El Salvador sovereign bonds outperformed Thursday, with notes due in 2050 rising 1.7 cents on the dollar as investors gained more confidence over the prospect of a program with the IMF. Dollar bonds from Ecuador, however, plunged as the nation continues battling ongoing forest fires and power cuts.

Sri Lanka dollar bonds extended gains as new president Anura Kumara Dissanayake said he plans to start discussions with the International Monetary Fund as part of his focus on establishing stability in the island nation before rolling out other initiatives.

In the Middle East, the shekel and Israeli stocks jumped amid diplomatic efforts to agree a potential truce between Israel and Iran-backed Hezbollah in Lebanon, though major obstacles to a deal remained.

--With assistance from Philip Sanders.

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