US Deal and Possible Delayed Tapering Could Boost Emerging Markets

With the removal of a major market overhang following a deal to avoid a U.S. debt default, investors have begun to wonder: are emerging markets set to soar?
“We expect the news to sustain the re-pricing of risk assets that got underway in September,” Tim Condon, head of research for Asia at ING, said. “We now think emerging market equity will outperform developed market equity in the current quarter.”

“The 12 percent loss during the May 21-August 30 market turmoil leaves more to claw back compared with developed market equity, which lost 3 percent,” he added, referring to the performance of the MSCI Emerging Markets Index and MSCI World Index. Condon noted that his top picks include Indonesia, the Philippines, Thailand and South Korea.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.