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Category Archives: Emerging Markets

IMF’s Regional Outlook Shows Asia Leading Global Recovery

Asia is leading the global recovery and the region’s contribution to global growth will continue to exceed that of other regions in the next two years, the International Monetary Fund (IMF) said today in its latest Regional Economic Outlook (REO) for Asia and the Pacific. The IMF revised upward its growth forecast for Asia to [...]

Africa to enjoy strong rebound: IMF

WASHINGTON — Sub-Saharan African will enjoy a strong recovery this year and next after the region fared much better than most developed countries during the global economic crisis, the IMF said on Wednesday.
The International Monetary Fund estimated that economic growth in the region would reach 4.7 percent this year and 5.9 percent in forecasts from [...]

China currency move a matter for medium-term – IMF

WASHINGTON (Reuters) – China recognises the need to let its currency appreciate for the good of its domestic economy but the move will only come in the “medium term”, the International Monetary Fund’s Asia director said on Saturday.
IMF Asia Director Anoop Singh told Reuters that China and other export-focussed Asian countries have been compelled by [...]

IMF: MENA Region Recovering with 4.5% Growth in 2010

The Middle East and North Africa region is growing out of its downturn at a good speed. Economic prospects across the region are quite diverse, shaped by different constellations of underlying forces, stated the International Monetary Fund (IMF) in its latest report “World Economic Outlook”.
There are several factors moulding the shape of the MENA region’s [...]

China’s credit curbs pose mounting risk to commodities

Telegraph:  The big global banks are quietly preparing for a slide in commodity prices over coming months as China clamps down on excess lending and the US Federal Reserve takes away the liquidity pot.
“We believe overheating risks in China are escalating,” said Michael Lewis, commodities chief at Deutsche Bank. “Heading into the second quarter, we [...]

Investors Explore the Frontier Markets

Businessweek: This year the real action for risk-tolerant global investors is on the frontier.
The MSCI Barra Frontier Markets index tracks equities of 25 countries, including six in the Middle East that account for 55% of the index’s total market capitalization. Year-to-date as of Apr. 12, the Frontier Markets index was up 13.66% compared with a [...]

As Asia rolls on, a new world order emerges

Asia’s economy is no longer hot, it’s scorching, a shift that will force policy makers in the region to be more aggressive in efforts to contain inflation.
Singapore’s monetary authority increased the value of the island nation’s currency yesterday after a government report showed gross domestic product expanded at a gravity-defying annual pace of 32.1 per [...]

Manufacturing Powers Growth in Emerging Markets

The revival of confidence among both consumers and corporations and the subsequent expansion in manufacturing have helped emerging-market economies to vault back to levels seen before the onset of the global financial crisis.
Manufacturing output and new orders growth in emerging-market economies recorded the highest expansion since the second quarter of 2004, according to the latest [...]

India Cuts Road, Ports Investment Targets as Projects Delayed

March 23 (Bloomberg) — India, ranked below war-ravaged Ivory Coast and Sri Lanka for the quality of infrastructure, lowered its target for spending on roads and ports after failing to complete planned projects.
Projected investment in docks, cranes and wharves may reach 407 billion rupees ($8.9 billion) in the five years ending March 2012, half the [...]

Russia jobless down, but economy still limping

MOSCOW, March 19 (Reuters) – Nearly 400,000 unemployed Russians found jobs last month, but the economy contracted as investment continued to fall and growth in retail sales and disposable incomes was very slow, data showed on Friday.
Russia’s economy started to recover from its first recession in a decade in the second half of last year, [...]

Russian economy to grow faster than projected in 2010 – ministry

Russia’s economy could grow by as much as 4-4.5% in 2010 compared with the government’s forecast of 3-3.5%, an Economic Development Ministry official said on Tuesday.
“Our forecast for 2010 is moderately optimistic. We expect GDP to grow by 3-3.5% in 2010. Added to the third and fourth quarter growth of 2009, this could be as [...]

Brazil’s economy adds record number of jobs in Feb

BRASILIA, March 17 (Reuters) – Brazil’s economy added jobs for the second straight month in February, creating a hefty 209,425 payroll positions as companies ramped up hiring amid a strong economic recovery, the government said on Wednesday.
The number was a record for the month of February, a holiday-shortened month because of annual Carnival festivities around [...]

India To Achieve 8.5% Growth In Next Fiscal Year: PM

RTTNews - Prime Minister Manmohan Singh expressed confidence that Indias economy would grow by 8.5% during the next fiscal and would accelerate to 9% in the following year from an estimated growth of 7.2% this fiscal.
He said this while inaugurating the conference on “Building Infrastructure : Challenges and Opportunities” hosted by the Planning Commission in New Delhi [...]

Reasons to sell out of emerging markets?

Look east for growth has been the mantra for many investors in recent months but there are mounting concerns that emerging markets face significant short-term headwinds.
CrossBorder Capital chief executive Michael Howell warns that a correction is ‘likely’ as volatility creeps up in the second half of the year and investors should instead be moving into [...]

India exports to China set to rise

NEW DELHI (Commodity Online) : Two of the world’s top emerging economies, India and China have agreed in principle to boost trade between them.
According to India’s Commerce Ministry, China has assured India that it would step up its imports from the country and also partner India in charting the Asian growth story.
China plans to invest [...]

Institutions to target Asian equities

FT.com: Institutional investors plan to increase their exposure to Asia in 2010 even though many admit that they lack knowledge and expertise in the region, according to a survey by the Economist Intelligence Unit.
Just a fifth of respondents think that the Asian growth story is over-hyped, with a similar minority believing that the region’s recovery [...]

A Severe Energy Crisis Threatens Eastern Europe

A Severe Energy Crisis Threatens Eastern Europe
“The World Bank has warned that Eastern Europe, Russia and Central Asia will be threatened by a severe energy crisis in five or six years, if billion-dollar investments are not immediately made for tapping into new gas and oil sources, for retrofitting an ailing pipeline and for reducing waste [...]

Beware the China bull – there’s still a long march ahead

It has long been said that when the United States sneezes, the rest of the world catches a cold. That may still be true, but it is the health of its nearest rival that needs monitoring.
For the new mantra could soon be: when China gets a headache, the rest of the world suffers a migraine. [...]

An ETF for exposure to China blue chips – iShares FTSE Xinhua China 25 (FXC)

The iShares FTSE Xinhua China 25 is an Ireland domiciled ETF that tracks the FTSE Xinhua China 25 index.
The
index consists 25 of the largest and most liquid Chinese stocks (Red Chips and H shares) listed and
trading on the Stock Exchange of Hong Kong (SEHK). The index is specifically designed for international
investors, combining the ease of [...]

Emerging Funds Resume Record Inflows, Shrug Off Dubai

Dec. 11 (Bloomberg) — Emerging-market funds bounced back from the Dubai debt shock, heading for record annual inflows as investors took money out of U.S. equities and piled into Brazil, China, India and Russia.
Equity funds focused on developing nations received $2.3 billion more than was withdrawn in the week to Dec. 9, bringing 2009 inflows [...]

Surging Chinese property prices stoke bubble fears

Property prices in Chinese cities rose at the fastest pace in 16 months in November, the government said Thursday, amid growing concerns about bubbles building in real estate.
Property prices in 70 medium and large cities rose 5.7 percent in November from a year ago, the biggest jump since July 2008, figures from the National Bureau [...]

(EEM) iShares MSCI Emerging Markets Index Chart

The previous post today looked at the underlying index of this ETF – MSCI Emerging Markets index.  The iShares ETF – EEM – tracks the index.  Online charts are more easily found for listed securities than for indices, so let’s look at the MarketWatch chart of EEM.
Of interest is the very strong fall through the [...]

MSCI Emerging Market Index Chart

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
As of June 2009 the MSCI Emerging Markets Index consisted of the following 22 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, [...]

Russian Inflation Slowed to 9.1% in November as Demand Fell

Russia’s inflation rate fell to the lowest level in more than two years last month after the deepest recession on record blunted demand, opening the door to further interest rate cuts from the central bank.
The rate fell to 9.1 percent from 9.7 percent in October, the Moscow-based Federal Statistics Service said in an e-mailed statement [...]

India economy grows 7.9%, shatters forecasts

India reported its best growth figures in 18 months on Monday as government spending and record low interest rates helped Asia’s third-largest economy rebound from the global financial crisis.
The 7.9-percent expansion in the quarter to September from a year earlier far eclipsed market forecasts and prompted the government to raise its growth expectations for the [...]

Mark Mobius: Dubai crisis could send emerging markets down 20%

The Dubai debt crisis could spark a 20% sell off in world markets, according to Templeton Asset Management chairman Mark Mobius.
The emerging markets guru warns that the current recovery was already being put under pressure by the glut of IPOs coming to market in the developing world and the risk aversion prompted by the problems [...]

Dubai debacle stops bull run in its tracks

Global stock markets plunged last week as investors feared a dangerous new phase in the economic crisis after Dubai asked to suspend debt repayments.
The Dubai government’s investment vehicle, Dubai World, sought late on Wednesday to shelve its obligations for six months. It had $59 billion (£36 billion) of liabilities at the end of August, most [...]

Rampant Theft and Bribery Make It Difficult to Transform Russia’s Economy

Russia is the worst country in the world for companies in terms of employee theft and extortion by officials, a PricewaterhouseCoopers LLP survey showed.
Seventy-one percent of domestic and foreign companies in Russia were victims of fraud in the past year, double the rate reported in fellow BRIC countries Brazil, India and China, PwC said in [...]

Industrialization will help Africa fully join world economy, says Ban

20 November 2009 – Armed conflict, inadequate infrastructure, weak governance, limited financing and technological abilities, and policies that stifle entrepreneurship, limit competition and raise the cost of doing business are hindering the industrialization that Africa needs to fully join the global economy, Secretary-General Ban Ki-moon warned today.
“Efforts to address these challenges must be rooted in [...]

IMF chief keeps up pressure on China to let yuan rise

International Monetary Fund chief Dominique Strauss-Kahn on Tuesday again urged Beijing to let the yuan rise “sooner rather than later”, saying it would benefit both China and the global economy.
“The renminbi (yuan) is undervalued. It’s not only in the interests of the global economy but also in the interests of China to have a revaluation,” [...]

Russia’s economy sees 13.9% growth in Q3

Statistics body Rosstat has today announced that Russia’s economy expanded by 13.9% in the third quarter compared with the second quarter.
However, when compared with the same period a year ago, the Russian economy contracted by 8.9%.
The economy, which is heavily reliant on oil exports, has suffered from a severe downturn but the latest figures show [...]

APEC Wary of Withdrawing Stimulus Too Early, Too Late

Nov. 14 (Bloomberg) — Asia-Pacific leaders said the withdrawal of economic stimulus packages is all about timing: too early and the recovery stalls, too late and resultant stock and property bubbles may trigger a fresh financial crisis.
“It is premature to talk about recovery of the global economy,” Russia’s President Dmitry Medvedev said in a speech [...]

APEC to maintain stimulus till recovery in place: draft

APEC leaders will maintain hefty stimulus packages until they secure a “durable” recovery from the global economic slowdown, according to a draft communique obtained by AFP Friday. “We will maintain our economic stimulus policies until a durable economic recovery is secured,” the draft said, stressing that “economic recovery is not yet on a solid footing”. [...]

China Should End Monetary Stimulus, Aberdeen Says

Nov. 5 (Bloomberg) — China should withdraw its monetary stimulus to correct “imbalances” in the economy and avoid bad loans from surging among the nation’s banks, said Aberdeen Asset Management Co., which manages $40 billion in Asian equities.
“The government is stimulating the economy through the banks,” Nicholas Yeo, head of Hong Kong and China equities, [...]

Emerging-Market Rally to Extend to 2010

Nov. 4 (Bloomberg) — Emerging-market equities, heading for their best year in a decade, will lead a first-half advance in global stocks in 2010 as export and domestic demand pick up, according to Prudential International Investments Advisers LLC.
John Praveen, chief investment strategist at Prudential, said he is “underweight” U.S. stocks for the first six months [...]

An emerging markets fund for Russia, India and China

From the factsheet:
FMG Rising 3 offers investors a unique access to Russia, India and China markets using the multimanager
concept. By investing with a mix of long-only and hedge fund managers, the Fund aims
to participate in the growth story for the next two decades whilst reducing the emerging market
risk.
Rising3 was the first country specific Russia, [...]

Near term correction possible, but emerging market investors need a longer term view

Bull markets favour riskier sectors, and emerging markets are no exception. According to data from AXA investment managers, during the past three bull markets since 1990 (the MSCI Global Emerging Markets inception date is 31 December 1987) emerging markets have returned on average 39 per cent, six months after the market trough, compared with 30 [...]

Asia Recovering Fast, but Faces a “New World,” IMF Says

Asia is rebounding rapidly from the depth of the global crisis, the International Monetary Fund (IMF) said today in its latest report on the region. According to the Regional Economic Outlook (REO) for Asia and the Pacific, released today in Seoul, Asia’s growth is forecast to accelerate to 5¾ percent in 2010 from 2¾ percent [...]

DJCHINA: The Dow Jones China Broad Index & Chart

On May 28, 1996, in commemoration of the hundredth anniversary of the Dow Jones Industrial Average, Dow Jones & Company introduced its Dow Jones China Index series. As the first series of indexes developed by a global index provider for Mainland China’s stock markets, the Dow Jones China Indexes are designed to give investors worldwide [...]

Asian leaders pitch rival blocs to boost global clout

Asian leaders heard competing plans from Australia and Japan for a massive EU-style community covering half the world’s population as they wrapped up their annual summit on Sunday.
The proposals at the meeting in Thailand come as the fractious region seeks to reduce its dependence on the United States and boost its global clout after recovering [...]

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