U.S. Jobs Data May Bring Relief to EMs

Any upbeat surprise in Friday’s closely-watched U.S. non-farm payrolls report could bring some relief to battered emerging markets, some analysts say.

That’s not what you might expect given that emerging markets from Turkey to Brazil and India have been hurt as the U.S. Federal Reserve starts to unwind its monetary stimulus in light of a brighter growth outlook.

“Ordinarily better jobs data would have led to a sell-off in emerging markets, which fear the taper, but this has been turned a bit on its head recently as weak U.S. numbers have added to fears that taper could take place in a world where the growth outlook is not that fantastic,” said Vishnu Varathan, market economist at Mizuho Corporate Bank in Singapore.

CNBC

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