Faster profit upgrades put emerging markets ahead of US stocks

Emerging markets are posting the fastest earnings upgrades globally. Equity analysts have boosted the average profit forecast for companies in the MSCI Emerging Markets Index by 12.1 per cent in dollar terms since a low on June 1. That’s edged past the 12 per cent increase for earnings estimates in the S&P 500 Index in the period. Developing-nation predictions are also rising at twice the pace as those of Europe.

Initially, most emerging-market upgrades came from China, which is set to be the lone major economy posting growth this year. But Latin America has seen the fastest surge in profit expectations