Page 8 - Emerging Markets

Avoiding a K-shaped global recovery

Political leaders in the developed world must recognise that no one is safe until everyone is safe, and that a healthy global economy is not possible without a strong recovery everywhere

India's public finances and private sector at taper tantrum risk

India is the third most indebted country among major emerging markets, behind Argentina and Brazil.

Emerging Asia's recovery can withstand reflation trade: S&P Global Ratings

The reflation trade that is lifting US yields will not hit Asian emerging markets' financial conditions and growth outlook as much as during the taper tantrum of 2013, S & P Global Ratings said on Wednesday."The recovery across Asia's emerging economies should withstand rising US yields so long as this reflects an improving growth outlook and reflation rather than a monetary shock," said Shaun Roache, Asia Pacific Chief Economist at S & P.In 2013, US yields leaped after the Federal Reserve indicated it will begin unwinding its quantitative easing programme. The resulting panic over rising credit costs led to sharp outflow from emerging markets, including Asia's, and forced central banks to hike interest rates."Not all yield shocks are created equal," said Roache.The report highlighted three important factors that determine vulnerability to external shocks in Asia and which are relevant today.One: the nature of the shock. Yields can rise for more than one reason. Some are more .

ArcelorMittal lists India's high public debt as risk factor for investments

India's public debt at 89.3% of GDP is one of the highest among EMs

Emerging markets bank support robust despite resolution regimes: Fitch

Government support for banks in emerging markets is unlikely to weaken materially despite greater adoption of bank resolution regimes, Fitch Ratings has said

India is well placed within EMs from an investment perspective: BNP Paribas

India has handled the pandemic rather well, companies have become more efficient, and there is a cyclical recovery underway, said Abhiram Eleswarapu, head of equities at BNP Paribas India

India leads EM pack in foreign flows, attracts close to $6 billion so far

The MSCI India's valuation premium to EM is now at 40 per cent, 3 per cent above the long-term average, according to BofA Securities

The reflation euphoria has a dark side for emerging markets

"If a particular allocation across the risky markets spectrum should be low confidence this year, it is the EM overweight," JPMorgan's John Normand wrote in a note to clients on Wednesday

Ind AS adoption for banks could be deferred till FY24, say sources

Extended dispensation on capital conservation buffer and SLR holding in HTM instruments point at a delay in adoption

EM stocks may have already peaked for the year, says Morgan Stanley

There are eight reasons why the MSCI Emerging Markets Index won't climb any further, analysts led by Jonathan Garner, chief Asia EM strategist (based in Hong Kong), wrote in a report

Emerging markets stocks, bonds saw $53.5 billion inflows in January: IIF

It is the tenth consecutive month of net positive flows to emerging markets

India only emerging market to get equity FPI inflows in 2020: Eco Survey

The country attracted $30 billion in the first nine months of the year

Deluge of emerging market ETF flow slows last week, shows data

The slowdown came as some investors questioned the recent euphoria in risk assets

Gripped by greed, emerging markets turn to the US Fed for next spur

Bloomberg's Fear-Greed indicator for the MSCI developing-nation stock gauge climbed to its highest in almost a decade, a sign that gains may have been excessive

Bright days ahead for India, emerging market equities in 2021 and beyond

The performance of Indian equities will mirror a larger trend of EMs doing better than developed markets

Sequoia-backed Drip Capital finances over $1 bn cross-border trade

As economies have opened up, Drip has witnessed over 50% quarter on quarter growth in the last three quarters

China needs to learn to restructure emerging market debt: WB economist

Increasing debt distress in emerging markets means that China, will need to start restructuring debts in the same way that Paris Club lenders did in past crises, Reinhart said

Will the bull keep running?

The global setting is perfect for equities, but investors should have one eye on factors that could rattle the markets

Aditya Birla Sun Life MF expects Nifty to grow 10-12% over 3 years

A weak dollar and strong commodity prices augur well for emerging markets (EMs)

India behind only China in cornering EM inflows in CY20, shows data

FPI flows in India for the year stood at $22.6 billion, 58 per cent higher than that in 2019