Sticking to fundamentals pays off for emerging markets

SINGAPORE (Oct 6): Emerging markets have fared better than developed ones as central banks stuck to orthodoxy and positioned their economies for growth, says Aberdeen Asset Management.

This is in direct contrast to the mess developed markets find themselves in, says Devan Kaloo, Aberdeen’s head of Global Emerging Markets, Equities.

Enduring austerity and taming inflation, emerging markets look set to cut rates to restart growth, causing bond prices to rally. Equities are also rallying on the back of fallen yields, driving fund inflows and leading currencies to rally as well. As such, Brazil and Russia are now set to forecast a positive Gross Domestic Product growth in 2017, a first in years, notes Devan.

---

Related Stories

• Powell doesn't fear Trump. He also can't contain him
• Fed cuts rates; Powell says wouldn't resign if asked by Trump
• Japan’s central bank hikes key rate hours before the Fed

---