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Category Archives: Emerging Markets

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

December 21, 2009 in Charts, China, ETFs, Funds by Roy

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

December 11, 2009 in Emerging Markets by Roy

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Equity funds focused on developing nations received $2.3 billion more than was withdrawn in the week to Dec. 9, bringing 2009 inflows [...]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

December 11, 2009 in China, Property by Roy

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

December 6, 2009 in Charts, ETFs, Emerging Markets by Roy

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

December 6, 2009 in Charts, Emerging Markets by Roy

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

December 6, 2009 in Russia by Roy

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

December 1, 2009 in India by Roy

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%

December 1, 2009 in Emerging Markets by Roy

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

November 29, 2009 in MENA by Roy

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

November 21, 2009 in Russia by Roy

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

November 21, 2009 in Africa by Roy

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

November 18, 2009 in China, Currencies by Roy

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

November 17, 2009 in Russia by Roy

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

November 15, 2009 in Asia-Pacific, Economics by Roy

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

November 7, 2009 in Asia-Pacific, Economics by Roy

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

November 5, 2009 in China by Roy

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

November 4, 2009 in Emerging Markets by Roy

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

November 3, 2009 in China, Funds, India, Russia by Roy

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

November 2, 2009 in Emerging Markets by Roy

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

November 1, 2009 in Asia-Pacific by Roy

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

October 28, 2009 in Charts, China by Roy

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

October 26, 2009 in Economics, Emerging Markets by Roy

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 [...]

Emerging markets show their mettle

October 25, 2009 in Emerging Markets by Roy

From The Observer
Emerging markets have been the place to invest over the past decade. While the FTSE 100 is down more than a quarter since it peaked in December 1999, and the S&P 500 in the US by 28%, markets in Brazil, India and Russia have more than trebled in value, while China has doubled, [...]

Ian Henderson on China driving commodity prices

October 16, 2009 in China, Commodities by Roy

With China consuming 50% of the world’s iron ore and at least 20% of the world’s other commodities the country is set to be a leading driver of the natural resources sector, according to JP Morgan manager Ian Henderson.
Henderson, who manages the JPM Natural Resources fund, said that the region is well on track to [...]

AAA-rated Ezra Sun: You should invest at least 25% of your portfolio in Asia

October 15, 2009 in Asia-Pacific, Videos by Roy

EBRD revises down 2009 economic forecasts, sees fragile recovery in 2010

October 15, 2009 in Eastern Europe, Economics, Russia by Roy

The economies of central and eastern Europe are expected to contract by an average of 6.3 per cent in 2009 following steep output declines in the first half of the year. Signs of positive growth in the third quarter of 2009 suggest that the recession is now bottoming out in many countries of the EBRD [...]

Strong China trade figures point to recovery

October 14, 2009 in China by Roy

BEIJING (Reuters) – China reported surprisingly strong trade figures on Wednesday, providing fresh evidence that the world’s third-largest economy is firmly on a recovery track and that global demand is improving too.
Exports in September fell 15.2 percent from a year earlier, beating forecasts of a 21 percent fall, while imports fell just 3.5 percent — [...]

A fund for BRIC equity

October 11, 2009 in Brazil, China, Emerging Markets, Funds, India, Russia by Roy

Schroder ISF BRIC USD
The fund aims to provide capital growth primarily through investment in equity securities of Brazilian, Russian, Indian and Chinese companies.
Click for: Factsheet; source.  Morningstar performance (ISIN: LU0228659784)
via: Schroder ISF BRIC (Brazil Russia India China) A Acc – ptassetmgr – Schroders .

Russia Chart – MICEX

October 4, 2009 in Charts, Russia by Roy

The MICEX Index.  NB – currency is RUB.
Click image to view full size or click below for source.
via MICEX / Indices & Market Data / Technical analysis.

Russia Chart (RTSI) – Marketwatch

October 4, 2009 in Charts, Russia by Roy

The ten-year chart of RTSI Index.
Click the image to see full size, or click below for source.
via RTSI Index Charts – Russia Index Charts.

Russian RTS Index shows the fastest growth in the world in 2009

October 4, 2009 in Charts, Russia by Roy

September 30th 2009. The RTS Index, the leading benchmark of the Russian stock market, has doubled in value since the beginning of the year, making it the best performing major world index for the 9 months of 2009, according to MarketWatch, part of The Wall Street Digital Network.
On Tuesday, September 29, 2009 the RTS Index [...]

Brazil is the first Latin American country to emerge from recession

September 28, 2009 in Brazil by Roy

Brazil is the first Latin American country to emerge from recession—and one of the earliest among the G-20 countries to have done so—following a 1.9% quarter-on-quarter expansion in economic activity in the April-to-June period. Whereas the global environment remains difficult and the export sector therefore continues to struggle, the strength of domestic demand has propelled [...]

World Bank Provides US$4.3 Billion to Support India’s Economic Stimulus, Infrastructure Investments

September 28, 2009 in India by Roy

WASHINGTON, September 22, 2009 – The World Bank today approved four projects worth US$4.3 billion to India, designed to support the Government’s infrastructure agenda and bolster its economic stimulus program.
After a period of high economic growth — which reached 9.7 percent in 2006-07 — the onset of the global financial crisis in 2008 saw India’s [...]

Why China must do more to rebalance its economy

September 27, 2009 in China by Roy

The data coming out of China suggest a powerful recovery is indeed under way.  In the first half of the year, noted the premier, gross domestic product expanded 7.1 per cent. The September consensus forecasts suggest that the Chinese economy will expand 8.3 per cent in 2009 and 9.4 per cent in 2010.  The Asian [...]

China Chart – Yahoo! Finance

September 27, 2009 in Charts, China by Roy

Update on chart for SSE Composite Index (Shanghai), with 100-day and 200-day moving averages.
Click image to view full size.

India Chart – Yahoo! Finance

September 27, 2009 in Charts, India by Roy

Chart update – 10 years BSE SENSEX – with 100-day and 200-day moving averages.
Click image to view full-size.

Templeton China – Market Commentary

September 26, 2009 in China, Fund Manager Updates by Roy

Extracts from the Templeton China August 2009 fund manager commentary.
• Concerns regarding policy tightening in China dragged regional markets down in August, although Chinese Premier Wen Jiabao stated that the government would maintain its current macroeconomic policy to ensure continued growth in the domestic economy.
• We believe the outlook for China remains positive due to [...]

A risky time to dabble in China

September 26, 2009 in China by Roy

Investors have long been told there are riches to be earned from China’s booming stockmarket.  But one fund manager believes that there is reason to believe now is a risky time to be investing in the superpower, with the market overdue a pull-back.
James Donald, the head of emerging markets at Lazard Asset Management is a [...]

First State Greater China Growth gets ‘Elite’ qualitative rating from Morningstar

September 22, 2009 in China, Funds by Roy

First State Greater China Growth sets the standard for others to follow, according to Morningstar.
There are multiple reasons why we hold this fund in such
high regard, not least its investment team. Lead manager
Martin Lau has a wealth of experience, and has managed
the Irish-domiciled version of the fund since 2002 and this
UK-domiciled offering since its late [...]

Resilient Asia Poised to Lead Recovery from Global Slowdown, Says ADB

September 22, 2009 in Emerging Markets, Sector & Specialist Reports by Roy

HONG KONG, CHINA – Developing Asia is proving to be more resilient to the global downturn than was initially thought, the Asian Development Bank (ADB) says in a new major report.
The Update to ADB’s flagship annual economic publication, Asian Development Outlook (ADO) 2009, released today, forecasts economic expansion in developing Asia to come in at [...]

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