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The South African rand climbed to its highest level against the dollar since December 2007 and hit a four-year peak against the euro as the price of gold rallied to a two-week high above $1,400 an ounce.
The rand also continued to find support from recent news that South Africa had been formally asked to join the Bric group of major emerging markets, comprising Brazil, Russia, India and China.
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President Jacob Zuma has been invited to the third Bric heads of state meeting in Beijing next year.
The rand has gained about 30 per cent against the dollar and 34 per cent against the euro since the start of 2009.
The Russian rouble hit its strongest level in two months against the dollar as oil prices hovered near a two-year high.
Turkey’s benchmark 10-year bond yield touched a record low of 7.1 per cent as the market priced in further interest rate cuts in coming months.
The central bank cut its key rate by 50 basis points to 6.5 per cent on December 16 to curb inflows of “hot money”, and said it would do more if necessary. It also raised the required reserve ratios to absorb extra liquidity.
Turkish stocks edged higher, although the ISE-100 index remained well off a record high struck in October. Nevertheless, the index has risen more than 25 per cent this year, easily outperforming the MSCI Emerging Market index.
Most other EM stock indices rallied, with the Jakarta Composite in Indonesia climbing 1 per cent and the Czech PX index putting on 0.3 per cent.
