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.
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