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Emerging Markets Related News
 in chronological order

 See also: Emerging Markets Related Books, Emerging Markets Related Scholarly Papers, or Emerging Markets Home Page.

Table of Contents:
 

Asia, emerging markets art fund seeks $100 mln-paper
April 30, 2006
From Reuters:
 Meridian Art Partners, a New York-based investor, plans to raise $100 million by the end of the year for a fund investing in contemporary art from Asia and other emerging markets, The Straits Times reported on Wednesday.

The Singapore daily quoted one of Meridian's partners, Roman Scott, as saying that it was looking to raise half of the targeted funds from rich Asian investors and would store a large part of its Asian art collection in Singapore.

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Emerging Markets Lead 40% Currency Trading Jump, Euromoney Says
April 30, 2006
From Bloomberg:
 Emerging markets led a 40 percent gain in currency trading to $175 trillion last year as banks relied on foreign exchange for earnings during a global credit- market crisis, according to a Euromoney survey.

Transaction volume in currencies increased 117 percent in Asia, 254 percent in central and eastern Europe, 42 percent in the Middle East and 145 percent in Latin America in 2007, Euromoney said in a statement on its Web site yesterday.

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Inflation Stalks Emerging Markets
April 24, 2006
From The Wall Street Journal:
 Thanks to years of strong economic growth, emerging markets have conquered many of their old demons. Now one former foe has returned to stalk these countries: inflation.

Rising prices represent a bigger economic and political challenge in these countries than the knock-on effects of the financial crisis emanating from the U.S., say analysts and investors.

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RPT-Buyout firms focus talent hunt on emerging markets
April 24, 2006
From Reuters:
 Private equity firms are hiring more staff in emerging markets to keep up with faster growth opportunities in Asia and Eastern Europe.

Like many of the big banks, buyout firms such as Blackstone (BX.N: Quote, Profile, Research) and CVC Capital Partners [CVC.UL] are moving key players from West to East and hiring locals in countries like Russia, China and India.

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Emerging Markets-Turkey, Hungary lead wider losses
March 31, 2006
From Reuters India:
 Turkish and Hungarian assets led wider emerging markets losses on Monday to fall over 2 percent as increased political uncertainty in the two countries worsened an already poor global risk appetite.

Weaker-than-expected economic data [nL31436295] coupled with the prospect that its ruling AK Party might be outlawed by the country's top court [nL31467208] spooked the Turkish lira, which slipped 1 percent to near seven-month lows. Turkish stocks .XU100 sank 2.49 percent to their lowest levels since the start of the year.

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Look to emerging markets for inflation
March 31, 2006
From The Globe and Mail:
 Merrill Lynch believes that inflation is still a big threat in 2008, despite declining global economic growth. Here's the interesting part though: The biggest source of inflation is not the United States, where the U.S. Federal Reserve is busily slashing interest rates. The biggest source is in emerging markets.

“The threat to U.S. inflation would come primarily from emerging markets allowing their currencies to appreciate dramatically, thereby ‘exporting' some of their inflation back to the U.S.,” said Merrill Lynch economists, in a recent report. “Incremental demand for commodities in recent years has mostly come from emerging, not developed, markets. In turn, skyrocketing commodity prices have partly contributed to pushing up EM inflation.”

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Bear Stearns casts shadow over emerging markets
March 18, 2006
From MarketWatch:
 The chilling effects of the weekend's fire sale of Bear Stearns spread into emerging markets Monday as investors wary of unsustainable debt punished stocks and pummeled currencies.

Turkish stocks were among the worst performers, shedding 8%, while Iceland's currency lost as much as 6%.

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Somerset eyes emerging markets

March 18, 2006
From Global Pensions:
 The $1bn (US$2bn) Somerset County Council Pension fund has said it intends to move into the alternate asset space with a £30m allocation to an active emerging markets mandate.

Speaking to Global Pensions, Anton Sweet, funds and investments manager, Somerset, said: “Theoretically this is a reallocation away from existing equities mandates, but in practice it will probably be taken from cash.”

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Emerging-Market Bonds Gain After Fed Announces Credit Package
March 11, 2006
From Bloomberg:
 Emerging-market bonds gained, sparking the biggest contraction in yield premiums over U.S. Treasuries since January, after the Federal Reserve announced plans to lend $200 billion to bolster credit in the economy.

The extra yield investors demand to own emerging-market bonds over Treasuries narrowed 16 basis points to 2.90 percentage points at 8:52 a.m. in New York, according to JPMorgan Chase & Co.'s EMBI Plus index. A basis point equals 0.01 percentage point.

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GE Targets Growth in Emerging Markets
March 11, 2006
From The Wall Street Journal Online:
 General Electric Co.'s Energy Financial Services unit said it will invest $5 billion through 2010 in energy and water projects in Asia, Latin America and the Middle East in a further sign of GE's diversification away from the U.S. economy.

GE Energy Financial Services Inc.'s chief executive, Alex Urquhart, said the planned investment is five times what the unit typically invests overseas in a three-year period, reflecting the company's view that emerging markets will grow faster than the U.S. in the near term.

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Exotic Stocks: Investors Flee, But Pros Don't
March 4, 2006
From The Wall Street Journal Online:
 As skittish small investors flee emerging markets, many professional money managers are wading deeper into them.

Increasingly concerned about the prospect of a U.S. recession and its potential impact on developing markets in Asia, Eastern Europe, Latin America and elsewhere, many individual investors have lately dumped emerging-market stock funds in favor of more sedate holdings, such as U.S. Treasury bonds.

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Going Beyond Emerging Markets
March 3, 2006
From The Motley Fool:
 Emerging markets have produced amazing returns over the past few years, but many investors are starting to look beyond them. As the BRIC bloc of Brazil, Russia, India, and China moves toward fully developed status, investors are looking for opportunities from less-traveled markets like Poland, Turkey, and Morocco.

The SPDR S&P Emerging Markets (AMEX: GMM) combines these two approaches into a single fund. As a result, investors can earn top returns from fast-growing popular emerging markets, along with some of the smaller and less well-known markets with high potential.

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Brazil moves to top of emerging market index
February 29, 2006
From Financial Times:
 Brazil has become the world's biggest emerging market, displacing China, according to a key market index.

The South American country's climb to the top of the index prepared by Morgan Stanley Capital International will have a big impact on fund managers around the world. Many investors benchmark their portfolios against the MSCI GEM index of global emerging markets.

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EM private equity funds raise record $59 billion
February 29, 2006
From MarketWatch:
 Emerging markets private equity funds raised a record $59 billion in new capital in 2007, exceeding the amount raised the previous year by nearly 80%, an industry association said Friday.

In 2007, 204 funds collectively raised $59 billion in fresh capital, a 78% increase over the $33 billion raised in 2006, the Emerging Markets Private Equity Association (EMPEA) reported Friday.

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Emerging-Market Bonds Fall on Concern Bank Writedowns to Swell

February 15, 2006
From Bloomberg:
 Emerging-market bonds fell after UBS AG said that bank writedowns may swell to over $350 billion, damping demand for higher-yielding securities.

Developing-nation dollar debt yielded 2.75 percentage points more than U.S. Treasuries at 9:41 a.m. in New York, up 3 basis points from yesterday, according to JPMorgan Chase & Co.'s EMBI+ index. A basis point is 0.01 percentage point. Bonds from Brazil, Peru and Panama led declines, with their yield gap over Treasuries widening at least 8 basis points.

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Investors gloomy on emerging market equities
February 14, 2006
From Reuters UK:
 Fund managers are increasingly pessimistic about emerging equities, though three quarters of investors surveyed have gone overweight Russia, a Merrill Lynch survey found on Wednesday.

The monthly poll of 190 global fund managers found investors at their most risk-averse since April 2001, with 40 percent now underweight global stocks, as the six-month old credit crisis stokes fears of a U.S. recession and a global slowdown.

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Credit Agricole eyes emerging market middle class jackpot
February 8, 2006
From Reuters:
 Expanding middle classes in developing countries offer investment opportunities in consumer goods, finance and telecoms, says Patrice Lemonnier, head of emerging markets equities at Credit Agricole Asset Management.

Companies tapping this growing appetite for goods and delivering infrastructure needed by increasingly affluent governments are the focus of the CAAM Funds Emerging Internal Demand equity fund launched late last year.

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Dollar Drop Eases Emerging Market Debt, Moody's Says (Update1)

February 6, 2006
From Bloomberg:
 Further declines in the dollar may help some emerging-market nations with rising currencies by making it easier for them to repay dollar-denominated debt, Moody's Investors Service said.

"For countries with large dollar debt, it could be some kind of tail wind,'' said Dietmar Hornung, vice president and senior analyst in Frankfurt for Moody's. In a report today, a research team led by Hornung said these countries would gain the most in debt relief should the dollar continue to gradually fall to about $2 per euro, from about $1.47 currently. A rising local currency means less of it is needed to exchange for dollars to repay the debt.

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Emerging markets face more volatility in February
February 3, 2006
From MarketWatch:
 The specter of a U.S. economic recession will loom over emerging equity markets this month, clouding the outlook and generating more volatility after the sharp declines seen in January.

Looking beyond the short-term volatility, however, emerging-markets analysts are optimistic about the long-term prospects of these markets, pointing to their strong fundamentals and declining valuations.

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Financial News: Emerging Mkts Gain Top Investment Bankers
February 3, 2006
From CNNMoney.com:
 Banks are creating more managing directors in emerging markets as dealflow in the developed world slumps and investors favor high-growth developing regions.

Banks including Goldman Sachs (GS), Lehman Brothers, Barclays Capital, Citigroup (C) and Morgan Stanley (MS), which have promoted staff to managing directors in the past two months, say they are elevating more people in emerging markets to cope with demand.

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Gurus Short Emerging Markets
January 22, 2006
From Forbes:
 Fears that the slowing U.S. economy will tip into recession kept stock market investors nervous last week. The Dow Jones Industrial Average ended the week down 4%. The blue-chip average, as of Tuesday morning, was down more than 11% year-to-date.

Even solid earnings reports from General Electric (nyse: GE - news - people ) and IBM (nyse: IBM - news - people ) couldn’t stop the sell-off heading into the weekend.

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Traders rush to emerging markets currencies
January 22, 2006
From Reuters:
 The dust had barely settled in the currency markets after the Federal Reserve's emergency interest rate cut on Tuesday when dealers went searching for one thing: yield.

Foreign exchange traders initially rushed to emerging markets currencies and sold the U.S. dollar after the Federal Reserve unexpectedly cut its federal funds rate by the most since 1984.

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Emerging markets fund leads GLG
January 15, 2006
From FinancialNews-US.com:
 The emerging markets fund run by US-listed UK hedge fund manager GLG Partners has become its largest after making more than 50% last year.

The fund, managed by Greg Coffey, has grown to more than $3.2bn (€2.2bn) after making a net return to investors of 50.3% last year, according to a person who has seen the fund’s returns.

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Merrill: Emerging-Market Stocks Seen Up In 08 Despite 'Tough' Start
January 14, 2006
From CNNMoney.com:
 Volatility in emerging-market stocks is to remain high, and early 2008 is expected to be "tough," but developing-world equity prices are likely going higher this year, Merrill Lynch (MER) said in a report to clients Monday.

"Demand for (emerging-market) assets continues to outstrip supply. ... EM assets are also underowned, and nowhere near overvalued. Investors should expect higher equity prices, (foreign exchange) appreciation and steeper yield curves across the emerging market universe in 2008," Merrill Lynch said.

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Emerging-Market Bonds Rise as Global Stock Gains Fuel Demand

January 8, 2006
From Bloomberg:
 Emerging-market bonds rose, led by a rally in Venezuelan debt, as gains in global stocks spurred demand for higher-yielding securities.

The spread, or extra yield, investors demand to own emerging-market bonds instead of U.S. Treasuries narrowed 6 basis points, or 0.06 percentage point, to 2.48 percentage points at 9:45 a.m. in New York, according to JPMorgan Chase & Co.'s EMBI Plus index. The risk premium shrank the most since Dec. 24.

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Instability in emerging markets to benefit India, says study
January 8, 2006
From Business Standard:
 India is set to benefit from political and security instability in other key emerging markets during the course of the year, according to the international business risk consultancy, Control Risks.

In Riskmap 2008, its annual study of levels of global, political and security risks, Control Risks rates 57 per cent of emerging markets at Medium political risk or above, indicating significant threats to foreign investment. India is rated at Low political risk.

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Real, Rand, Lira Rallies Are at Risk as Yields Fall (Update3)

January 2, 2006
From Bloomberg:
 The world's biggest foreign-exchange traders say the best performing emerging market currencies will decline against the U.S. dollar this year as economic growth slows and price swings increase.

Brazil's real, Turkey's lira and South Africa's rand may weaken at least 3.75 percent after gains of more than 14 percent in 2007, according to the median forecasts of banks and securities firms surveyed by Bloomberg News. The lira and rand last fell in 2006, while the real has strengthened for five straight years.

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Russia? Mexico? What's the next Ukraine?
January 2, 2006
From The Globe and Mail:
 China was near the top of global markets in 2007, surpassed only by Ukraine. Now, the question becomes which countries are expected to be the leaders in 2008 and perhaps more importantly, what does the year hold for global markets, particularly the emerging markets?

Ukraine's PTS index climbed 135 per cent over the year, handily beating China's benchmark Shanghai Stock Exchange composite index, which soared more than 96 per cent.

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2008 could be the year to buy emerging market funds
December 26, 2006
From Citywire:
 Investors should ride out the expected economic downturn by diversifying their portfolios and increasing their exposure to emerging economies, according to investment experts.

Anna Bowes at AWD Chase De Vere says investors should resist the temptation to try and predict the bottom of the market. ‘As it is expected to be another challenging year for UK equities it’s worth investors remembering that it’s time in the market that’s important, not timing the market’, she said.

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Emerging Markets Beckon
December 24, 2006
From Barron's Online:
 ABOUT FIVE YEARS AGO, Art Steinmetz's emerging-market debt portfolio at Oppenheimer Funds was roughly 80% in dollar-denominated developing-world debt. Today, dollar-denominated bonds account for 40% of the portfolio, with local-currency debt responsible for 60%. The change, although gradual, illustrates a recent shift in investors' approach to emerging-market bonds.

In the past, emerging-market debt provided equity-like returns -- along with equity-like risks. But investors who still think of emerging markets primarily in terms of regular economic and political upheavals haven't been paying attention. Emerging economies have benefited from the commodities boom, using the windfall to pay down debt and improve their balance sheets. Indeed, some have accumulated massive foreign-currency reserves, which they have been lending to more developed countries, including the U.S.

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3 Overlooked Emerging Markets
December 19, 2006
From The Motley Fool:
 Is now the right time to jump into emerging markets?

After a tremendous five-year run in international markets -- especially emerging markets -- many investors have sought to capitalize on foreign growth by moving assets to other countries. According to a July article in SmartMoney magazine, inflows into international mutual funds topped $117 billion over the previous two years, versus just $18 billion for domestic funds.

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Emerging markets to drive European equity issuance
December 19, 2006
From Reuters:
 The U.S. subprime-led credit crunch makes it challenging to repeat a record-breaking 2007 for European equity issuance. But bankers hope deals from emerging markets will keep deal flows buoyant next year.

Europe, Middle East and Africa (EMEA) equity capital markets (ECM) hit an all time record high of $340 billion in 2007, up 20 percent from the same period last year, according to Thomson Financial.

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Taking a Short Position in Emerging Markets
December 14, 2006
From Seeking Alpha:
 Last week, I wrote that I was considering a short position in emerging markets. On Thursday, I took a quarter position and purchased the ProShares UltraShort Emerging Markets ETF (EEV).

The MSCI Emerging Market index can fall all the way to 1100 and still be in an uptrend. Thus, I will use that approximate price target as a trigger point to either add more or cover, though I may do either before then.

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Emerging-Market Bonds Fall on Concern About U.S. Growth Outlook
December 13, 2006
From Bloomberg:
 Emerging-market bonds fell, led by Argentine securities, on concern measures by central banks to ease banks' borrowing costs won't prevent the U.S. economy from weakening.

The Fed said yesterday it will inject cash to banks through auctions and by providing $24 billion in currency swap lines to the European and Swiss central banks in an effort to reduce ``elevated'' short-term funding costs.

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Emerging markets for ideas
December 10, 2006
From The Cincinnati Post:
 During my last trip to China, my hosts treated me with an elaborate dinner. Following the umpteenth course, one Beijing policymaker proposed, "Chinese society is based on food, but American society is based on sex." My rather tart reply: "Oh yeah? Then how come Americans are so overweight and there's a billion Chinese?"

After convulsing with laughter, my host declared that a strategist like myself would be better off working for the Chinese: "Compared to America, we face many more strategic puzzles." He was right, and lying therein was an inescapable challenge for American businesses: Access Asia's emerging markets or risk missing out on their coming wave of innovation.

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Money-Market Strain May Be Slow to Fade
December 10, 2006
From The Wall Street Journal Online:
 Strains in money markets may be slow to fade and some emerging-market assets may face stiffer headwinds, the Bank for International Settlements warned in its quarterly report.

The report, released yesterday, said that money-market concerns "were particularly acute with respect to the expected liquidity situation around the turn of the year -- a period when liquidity demand normally tends to be heightened and markets particularly vulnerable to illiquidity."

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Emerging Markets Face Slower Global Growth, Merrill Lynch Says
December 3, 2006
From Bloomberg:
 Emerging markets will be vulnerable to the mounting risks of slowing global growth and accelerating inflation next year, Merrill Lynch & Co. said.

The slowdown in the U.S. economy may set off a wider reduction in global growth, curbing demand for commodity exports, New York-based Merrill said in a report today. A quickening of inflation in developing countries may lead them to impose ``capital controls,'' according to Merrill.

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FUND VIEW-Schroders bullish on Middle East stock markets
December 3, 2006
From Guardian Unlimited:
 For investors concerned about the global credit crunch and worried about a bubble in emerging markets such as China and India, a Schroders fund manager has a solution: the Middle East.

Strong economic growth, rising foreign investment, and most importantly, less correlation with other global markets are making countries such as the United Arab Emirates attractive, said Allan Conway, head of global emerging market equities for the British fund manager.

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Growing role of emerging markets good news for Euro area - Trichet
November 26, 2006
From Forbes:
 European Central Bank president Jean-Claude Trichet said the growing role of emerging markets is good news for the euro area due to the burgeoning trade between the two regions.

'Our exports and imports of goods and services account for around one-fifth of GDP, more than the US or in Japan,' he said.

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Mark Mobius Has Faith in Emerging Markets
November 26, 2006
From TheStreet.com:
 In a market overshadowed by predictions of horror, Mark Mobius, manga comic book hero, is being the contrarian and optimist that investors know him best for.

"A really serious recession in the U.S. would have global implications, but from the numbers we are seeing in the States, we can't figure out why everyone is so full of doom and gloom. In the third quarter, we are talking about 5% growth," Mobius said in an exclusive interview with TheStreet.com.

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Opportunities still abound in thriving Turkish banks
November 19, 2006
From MarketWatch:
 The headquarters of Garanti Bank, a skyscraper in the Maslak business district, offer a breathtaking view. From the floor-to-ceiling windows of a plush office on the 15th floor, visitors can see the geography of the city -- from the Bosphorus which divides the European and Asian sides to the Golden Horn harbor.

The panoramic vista and the stature of the building fit well with Garanti's position as one of the leading players in the fast-growing Turkish banking sector, which has staged an impressive comeback after hitting rock bottom six years ago.

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Wholesale sales rise on demand from emerging markets
November 19, 2006
From The Financial Post:
 Wholesale sales in Canada toppled expectations in September, recording broad gains across almost all product categories.

Wholesale sales rose 1.1% on the month, reversing a 1.9% decline in August and contributed to an overall gain in sales in the third quarter following a slight decline in the second, Statistics Canada said on Monday.

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Attention turns to emerging markets
November 12, 2006
From Global Pensions:
 A number of pension funds - some 17% - have considered upping their allocation to emerging markets in the wake of the recent credit crunch, found the results of November’s Global Pensions 100 Panel.

Asset managers running emerging market funds have been quick to point out they remain largely uncorrelated to other markets - as evidenced by the minimal impact caused to most emerging markets by the recent sub-prime crisis, which wreaked havoc with more developed markets.

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Goldman Sachs reportedly cutting exposure to emerging markets
November 12, 2006
From MarketWatch:
 Goldman Sachs Group Inc. is reducing its exposure to emerging markets as turmoil in global credit markets risks triggers a correction in Latin America, Eastern Europe and parts of Asia, the Daily Telegraph reported on its Web site Sunday.

Citing a series of client notes issued recently, the Telegraph reported that Goldman Sachs has advised cashing in profits as a precautionary "near-term" measure.

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Emerging-economy stock markets show promise, despite bubble fears
November 5, 2006
From The International Herald Tribune:
 For all the concern about stock market bubbles in Brazil, Russia, India and China - the BRICs - the biggest emerging markets still may have more promise than anything in the developed world.

The simple math of comparing the value of companies with their countries' combined gross domestic products shows that those four markets total $1.71 trillion, or 25 percent of their GDP. U.S. equities available for trading, by contrast, are worth $13.98 trillion, or about the same as comparable GDP, according to data compiled by Morgan Stanley and Bloomberg. Stocks in all industrialized nations account for 81 percent of GDP.

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Emerging market funds power ahead
November 5, 2006
From Reuters UK:
 Emerging market funds have produced up to six times higher returns than their leading mainstream counterparts over the past five years, data shows.

The top-performing Asia Pacific (excluding Japan) fund, Gartmore China Opportunities, has gained 26,850 pounds on a 5,000-pound investment five years ago -- a staggering 537 percent rise -- according to independent online fund ratings provider Moneyspider.com.

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Emerging-Market Bonds Advance on Fed Rate-Cut Expectations

October 31, 2006
From Bloomberg:
 Emerging-market bonds rose as speculation the Federal Reserve will lower interest rates spurred demand for higher-yielding assets.

"Everyone is waiting for the Fed, with the market pricing in a 25 basis-point cut,'' said Edwin Gutierrez, who helps manage $5 billion of emerging-market debt at Aberdeen Asset Management Plc in London. "But alternative outcomes can't be discounted. If there's no cut, the market would take that negatively.''

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Barclays Launches First Emerging Market-Based ETFs In Mexico
October 30, 2006
From CNNMoney.com:
 Barclays Global Investors rang the bell Tuesday on its first locally based exchange traded funds for emerging markets, with the launch of four Mexico-based iShares.

The four ETFs are certificates traded like stocks on the Mexican stock exchange, and track the local stock market's Composite, LargeCap index, MidCap index, and the Habita index, which comprises the six home construction companies.

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Emerging markets set pace at Inchcape
October 24, 2006
From Financial Times:
 Inchcape, the British car retailer, is broadening its push into Russia as it looks to take advantage of a growing appetite for luxury cars in emerging markets.

This month the company spent £21.6m buying a 75 per cent stake in an Audi and Peugeot retailer in St Petersburg. It is also expanding its Toyota and Lexus retailing in the city.

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Emerging markets-Strengthen on positive tone in U.S. equities
October 23, 2006
From Reuters:
 Emerging market stocks and bonds strengthened on Tuesday, as investors regained their appetitite for risk in the absence of any fresh news of U.S. problems in credit problems, after last week's volatility.

"The market is moving up on the lack of any negative headlines rather than any positive ones," said ABN Amro analyst Siobhan Morden.

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Emerging Markets Become Favorite Pick, Merrill Says (Update2)

October 17, 2006
From Bloomberg:
 Investors are the most optimistic on emerging markets since 2004, replacing Europe as the top choice, on the view stocks from Chile to Vietnam will be least affected by slowing economic growth, a Merrill Lynch & Co. survey showed.

More than half of the 209 respondents to the poll, conducted between Oct. 5 and Oct. 11, said earnings look the most favorable for developing nations, while prospects for European profits dropped to the lowest in almost two years.

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Emerging Markets Stay on `Upward Ratings Trajectory,' S&P Says

October 16, 2006
From Bloomberg:
 Developing countries will continue receiving credit ratings increases as mounting foreign reserves and budget surpluses allow them to weather global credit market turmoil, Standard & Poor's said.

Nine emerging-market countries' debt ratings, including those of China and Brazil, are on positive outlook, according to the ratings company. The pace of ratings reductions for developing nations is at a historical low, S&P said in a report today.

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Investors move billions to emerging markets in one week
October 10, 2006
From FinancialNews-US.com:
 Investors have moved billions to emerging markets and away from developed markets funds in the last week, as emerging market indices reach record highs.

Emerging markets equity funds have taken in over $5bn for the second week running, meaning that over the past six weeks the funds have taken in a net $18.9bn while posting a collective portfolio gain of 19.7%.

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ADRs in Focus: Emerging Markets
October 9, 2006
From Forbes:
 An index of emerging markets ADRs edged up Monday, boosted by gains in shares of mining companies.

The Bank of New York (nyse: BK - news - people ) Emerging Markets ADR Index - which includes shares of companies based in Hong Kong, South Africa, Brazil, Mexico, China and India - added 5.74 points, or 1.5 percent, to 381.76 in afternoon trading.

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Emerging market boom replaces bursting U.S. bubbles

October 3, 2006
From Reuters UK:
 The bursting of U.S. housing and mortgage market bubbles has suddenly been replaced by emerging markets inflating, and world equities have got pumped up into the bargain.

With the herd mentality of global investors ever sharper, the Federal Reserve's decision two weeks ago to combat a U.S. credit market seizure with lower interest rate has stampeded investors to Asia, Latin America and elsewhere in the developing world.

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Finisterre Boosts Emerging Market Teams With New Hires

October 3, 2006
From FINalternatives:
 Emerging markets hedge fund shop Finisterre Capital has hired George Liberatore and Christopher Watson to boost its special situations and emerging market corporate research expertise teams.

Liberatore is based in the firm’s Connecticut office focusing on sourcing and structuring transactions in Latin America. He rejoins the two founding Partners of Finisterre, Frode Fosse-Skiftesvik and Tom Priday, with whom he worked at DePfa Investment Bank from 1998 to 2002.

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Emerging Markets Gaining Independence

September 26, 2006
From Forbes:
 Emerging markets are becoming less reliant on the United States for their financial strength, and investors are catching on to the trend amid concerns about the domestic economy.

Brad Durham, managing director at Emerging Portfolio Fund Research Inc., said since the beginning of the year, a net $13.2 billion has poured into the $464.5 billion in emerging markets funds his company tracks. Of that total, $8 billion was injected in just the past four weeks.

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Emerging markets turn old financial order on its head

September 26, 2006
From The Business:
 Worried about your portfolio? As the credit crunch continues to send shockwaves through the City, you are probably wondering where to park your money until it all blows over. The Swiss franc, maybe? Or US government bonds?

Actually, anybody looking for a safe haven would have been better off with the Thai baht, the Croatian kuna – or indeed, that well known anchor in troubled times, the Brazilian real.

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Emerging Markets Fly In Wake Of Rate Cut

September 19, 2006
From CNNMoney.com:
 Emerging markets, which were battered by the flight from risk this summer, soared to new highs following the Fed's rate cut this week.

While U.S. growth slows and pundits debate the coming of a recession, few could argue there is robust growth in emerging markets, which show insatiable demand for commodities and strong balance sheets.

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Analysis | Emerging markets looking good
September 13, 2006
From The Seattle Times:
 Emerging-market stocks have skidded along with U.S. stocks this summer, making them more attractively priced, analysts say. By investing in emerging markets, U.S. investors can also profit from the weak dollar. Citi Investment Research analysts say prospects for continued growth look good, as emerging markets are less burdened by government deficits. Many, such as China, now have surpluses.

Stock markets worldwide have reacted to the credit crunch sparked by spiking foreclosures for U.S. homeowners with poor credit. The MSCI Emerging Markets Index dropped 17 percent between July 13 and Aug. 16 while the Standard & Poor's 500 lost 9 percent.

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Emerging-Market Bonds Gain as Fed Cut Speculation Boosts Demand
September 11, 2006
From Bloomberg:
 Venezuela and Colombia led gains in emerging-market bonds on speculation the Federal Reserve will cut borrowing costs to spur the U.S. economy, the biggest buyer of developing nations' exports.

Demand for riskier, higher-yielding securities such as stocks and emerging-market bonds surged on growing expectations the Fed may cut its benchmark rate a half-percentage point during its Sept. 18 meeting. The Standard & Poor's 500 Index gained 1.4 percent, the biggest since Aug. 29.

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Emerging-Market Bonds Rose After U.S. Jobs Reports Spur Demand
September 6, 2006
From Bloomberg:
 Argentina paced gains in emerging- market bonds after U.S. reports on jobs eased concern the turmoil in credit markets will curtail growth in the world's largest economy.

Investor demand for riskier securities such as developing nation debt and stocks rose after reports showed rising worker productivity and expansion in service industries. A continued expansion in the U.S. will help maintain demand for the exports of emerging-market economies.

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Emerging market central banks sell some U.S. Treasuries
September 6, 2006
From Reuters:
 Emerging market central banks, concerned about the global credit squeeze of recent weeks, probably sold a portion of their U.S. Treasury holdings to offset capital outflows, but the trend may be short-lived.

The worst global credit and liquidity squeeze in a decade, triggered by losses on U.S. mortgage-related securities, has resulted in some outflows from emerging markets and a reduction in foreign exchange reserves in some developing countries that has caused some official selling of foreign assets.

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Citigroup Names Lathrop Credit Trading Head, Combining Units
August 27, 2006
From Bloomberg:
 Citigroup Inc., the largest U.S. bank, named Carey Lathrop head of a newly combined credit-trading businesses for developed and emerging markets, replacing two executives who left.

Lathrop, 44, had led the emerging-markets unit since 2005. James Higgins and David Pichler, who ran the developed markets group, ``will pursue opportunities outside of the company,'' according to a Citigroup memo whose contents were confirmed by spokeswoman Danielle Romero-Apsilos.

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Emerging markets still a big draw
August 27, 2006
From Business Standard:
 Three such funds have been launched recently, more are in the pipeline.

The appetite for emerging markets such as India, China and others remains strong despite the recent turmoil in Asian and American markets.

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Latin American markets show resilience amid global tumult
August 22, 2006
From The International Herald Tribune:
 In the mid-1990s, the Brazilian stock market took almost two years to recover from the 61 percent drop in the Bovespa index caused by the devaluation of the Mexican peso.

This year, the Bovespa came back in six weeks from an 11 percent decline in February after a stock sell-off in China spread across the world. The Chilean and Mexican markets showed similar resilience.

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Emerging markets 'will bounce back'
August 21, 2006
From The London Stock Exchange:
 Experts at F&C are arguing that stock markets in emerging economies will come out of recent volatility stronger than before, while economic growth will be strong.

Though emerging markets have fallen by 15 per cent since the recent peak in July, Sam Mahtani of F&C asserts that these markets are likely to bounce back in the coming future once confidence returns to the market.

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Emerging markets feel subprime heat
August 16, 2006
From The Age:
 SHARES in emerging markets and currencies have slumped, with Indonesian stocks tumbling the most in a year, after widening losses linked to US subprime loans prompted investors to shun riskier assets.

"US subprime losses have detonated a global financial markets disaster," said Vickie Hsieh of President Investment Trust in Taipei.

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Are there 'safe' emerging-market currencies?
August 15, 2006
From MarketWatch:
 Most emerging-market currencies pared losses, but remained under heavy selling pressure on Wednesday. The Turkish lira fell 2.5% against the dollar, the South African rand dropped 0.8%, the Brazilian real shed 0.6%, and the Icelandic krona dropped 1.2%.

"There is not conviction that this credit market turmoil has run its course," said Paul Biszko, senior emerging markets analyst at RBC Capital Markets. "We continue to advocate a defensive approach in the very short term."

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3 Overlooked Emerging Markets
August 9, 2006
From The Motley Fool:
 Is now the right time to jump into emerging markets?

After a tremendous five-year run in international markets -- especially emerging markets -- many investors have sought to capitalize on foreign growth by moving assets overseas. According to a recent article in SmartMoney magazine, inflows into international mutual funds have topped $117 billion over the past two years, versus just $18 billion for domestic funds.

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Emerging Markets Continue to Outperform Developed Markets in July, Says S&P
August 9, 2006
From CNNMoney.com:
 Standard & Poor's, the leading provider of financial market intelligence, announced today that emerging market returns outpaced developed market returns in July. According to Standard & Poor's global stock market review, The World By Numbers, emerging equity markets rose 4.53% for the month versus a 2.02% loss for developed equity markets. Looking at the 12-month period ending in July, emerging market returns continue to remain strong with a 53.94% gain, more than double the developed markets gain of 21.52%.

"World markets were volatile in July, with developed markets weighted down by poor performances in Japan, United Kingdom and United States," says Howard Silverblatt, Senior Index Analyst at Standard & Poor's. "In the United States, markets set a new high on July 19th and then fell 6.3% by the end of the month. U.S. concerns over liquidity, housing and fixed income instruments related to housing were the chief reasons for the downturn in the markets, while globally, the events were regarded solely as a U.S. issue."

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Emerging-Market Dollar Bonds Decline After U.S. Jobless Report

August 3, 2006
From Bloomberg:
 Emerging-market bonds fell after a U.S. report showing employers added fewer jobs than economists forecast suggested housing market woes were hurting the world's largest economy.

The jobs data adds to speculation that subprime mortgage losses are spreading to other markets, prompting investors to reduce holdings of riskier securities such as stocks and developing nation debt.

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Will Brazilian equities hold up amid rising risk aversion?
August 2, 2006
From MarketWatch:
 Can the Brazilian stock market, one of the star performers of the last two years, stand its ground in the face of a sharp spike in global risk aversion?

Tracking a late rebound on Wall Street, Brazilian stocks finished higher Wednesday, after being rattled along with international markets by fear that U.S. credit and housing problems are spilling over globally.

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Emerging markets saw fund inflows drop 28 pct last week - Polish brokers
July 27, 2006
From Forbes:
 Net inflows to emerging markets-dedicated funds fell 28 pct to 2.4 bln usd in the week ending July 25, but were at the third highest level in the last 12 months, UniCredit (CA IB) Warsaw brokerage said in a note.

The bulk of the fresh money - 1.7 bln usd - was absorbed by Asia ex-Japan funds, while inflows to Latin America-dedicated funds were almost unchanged week-on-week and stood at 440 mln usd.

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Restructure proposals for Mobius Trust voted down
July 27, 2006
From Citywire:
 The board of Mark Mobius’s Templeton Emerging Markets Trust (TEMIT) has failed to push through its plans for a capital reorganisation.

Under proposals sent to shareholders on 3 July the board of the £2.2 billion trust (TEM) proposed to convert up to 25% of the trust’s shares into tracker shares redeemable over varying time periods.

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Automaker GM Bets On Emerging Markets To Help US Turnaround
July 19, 2006
From CNNMoney.com:
 U.S. automaker General Motors Corp. (GM) is betting heavily on emerging market growth in its turnaround effort, with investments to expand output and sales overseas expected to pay dividends for the U.S. business, according to GM chairman and chief executive Rick Wagoner.

"It makes good sense to invest in regions where we see opportunities for growth," Wagoner said.

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COLUMN-Shelter from storm? Look to emerging markets: James Saft
July 19, 2006
From Reuters:
 Emerging markets, usually the kind of bet that goes very bad when markets get cranky, should prove a safe haven if problems in subprime and corporate lending prompt a more severe flight from risk.

Large reserves of cash and the ability to fund in their own currencies mean emerging markets are now resilient in the face of market turmoil even if they are not immune.

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Emerging markets flooded by local-currency global bonds
July 14, 2006
From Reuters Africa:
 Emerging debt investors were flooded this week by billions of dollars in local-currency global bonds offered by governments and companies, despite market concerns related to the U.S. subprime mortgage market.

A large chunk of the new issuance is denominated in the Brazilian real, which has gained more than 14 percent so far this year. But sovereign bonds are also being offered in other strengthening local currencies, such as the Colombian peso, the Peruvian sol and even the stable Egyptian pound.

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Emerging Markets: Long In The Tooth?
July 12, 2006
From CNNMoney.com:
 Surging emerging markets have become a hot destination for investors. So the question becomes how much longer until funds investing in such markets roll over?

Time and again, big rushes into an asset class or region have spelled the end of the move, but there is no set time. It seems investor interest in this category has started to wane.

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3 Overlooked Emerging Markets
July 9, 2006
From The Motley Fool:
 Is now the right time to jump into emerging markets?

After a tremendous five-year run in international markets -- especially emerging markets -- many investors have sought to capitalize on foreign growth by moving assets overseas. According to a recent article in SmartMoney magazine, inflows into international mutual funds have topped $117 billion over the past two years versus just $18 billion for domestic funds.

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Emerging Market Stocks Climb for 8th Day: Samsung Leads Rally

July 9, 2006
From Bloomberg:
 Emerging markets stocks rose for an eighth day, the longest rally in almost 16 months, as a decline in U.S. Treasury yields fueled demand for riskier assets in developing countries.

Samsung Electronics Co. led the rally, boosted by rising computer chip prices. The Morgan Stanley Capital International Emerging Markets Index today rose 1.3 percent to 1120.09, breaking a record for a sixth day.

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Emerging Markets Push Stocks Up
July 2, 2006
From The Wall Street Journal:
 Soaring emerging markets led non-U.S. stocks higher, despite nervousness as the second quarter ended.

Investors, especially in the U.S. and Europe, have become concerned about the U.S. mortgage market, higher Treasury yields and increases in interest rates around the world. This caused major European markets to give up some of their gains, after touching records in June.

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Rogers Says He's Sold Emerging Markets, Except China (Update3)

July 2, 2006
From Bloomberg:
 Jim Rogers, who predicted the start of the global commodities rally in 1999, said he's sold out of all emerging markets with the exception of China because they're "over-exploited.''

"I'm hoping when the next big correction comes I'm smart enough to buy some of them back,'' Rogers, chairman of New York- based Beeland Interests Inc., said in an interview in Singapore today. "They're all over-exploited, so I've sold out.''

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After China and India: The next hot markets
June 27, 2006
From CNNMoney.com:
 For years investors have piled into economies like China and India in search of outsize returns.

But after so much white-hot growth, these so-called developing countries are starting to mature, spurring talk that higher inflation will bring an end to the emerging markets boom.

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OECD plays down emerging markets selloff risk
June 27, 2006
From Reuters:
 Organisation for Economic Co-operation and Development (OECD) Secretary General Angel Gurria said on Wednesday he did not believe there was a risk of an emerging markets selloff due to global monetary tightening.

"I don't think the whole situation today is conducive to any kind of very dramatic or very unexpected events," Gurria told Reuters at a conference when asked about whether there was a risk of an emerging markets selloff amid global tightening.

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Fund managers are bullish on emerging markets: S&P survey
June 21, 2006
From MarketWatch:
 Fund managers continue to be bullish on emerging markets, citing attractive yields and valuations, the positive outlook for local economies, and the large foreign currency reserves in many of these markets, according to a survey by Standard and Poor's.

"With liquidity continuing to flow towards emerging markets, the concerns that fund managers have about risks seem to be comfortably outweighed by the opportunities they continue to see in these markets," said David Wyss, chief economist at Standard & Poor's, in a statement Thursday.

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HSBC Will Refocus on Emerging Markets, Asia CEO Says (Update2)
June 21, 2006
From Bloomberg:
 HSBC Holdings Plc, the world's third- largest bank by market value, will step up expansion in emerging markets such as India after mounting mortgage defaults at its U.S. unit crimped profit, the company's incoming Asia chief said.

"We're going to have a finance-led emerging markets focus,'' shifting away from developed markets, said Sandy Flockhart in a phone interview from Johannesburg. Flockhart, who takes over HSBC's Asia operations next month, said he plans to increase hiring in countries including India and China.

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Emerging-Market Bonds Advance After U.S. Core Inflation Slows
June 15, 2006
From Bloomberg:
 Emerging-market bonds rose after a report showed U.S. core inflation unexpectedly slowed last month, damping speculation the Federal Reserve will raise interest rates.

``CPI was more benign than expected and that's what's driving sentiment now,'' said Beat Siegenthaler, a senior fixed- income strategist at TD Securities in London. ``The U.S. Treasury market had sold so much because of an inflation scare. Riskier markets have shown very strong resilience.''

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UBS' Hoefert Anticipates Shift From Developed To Emerging Markets
June 15, 2006
From SeekingAlpha:
 There is long-term strategy, and then there is the kind of strategy espoused by Andreas Hoefert, chief global economist at UBS: Rather than look at what is coming down the pipe later this year, look at 2025 and 2050.

Unusual? You bet. But his ideas could have a big impact on investors as emerging markets move up the ranks of the world's largest, and potentially most important, economies in the coming decades.

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Schroders' Conway sees new era for emerging markets
June 6, 2006
From Citywire:
 Schroders’ Allan Conway thinks the dynamics of emerging market economies have now changed, making them stronger than developed economies.

Conway runs three funds focused on emerging markets: Schroder ISF BRIC, Schroder ISF Emerging Markets and Schroder ISF Emerging Europe. He remains ‘very very positive’ about emerging markets despite a four year run of excellent performance.

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Emerging markets guru Mobius plays down China risk
June 5, 2006
From IFAonline.co.uk:
 Templeton head of emerging markets Mark Mobius says the world impact of a potential crash in Chinese markets 'need not be huge'.

His comments came as China tripled the share-trading tax in a bid to cool the yuan-denominated domestic share market in Shanghai and Shenzhen. This caused a massive drop in Chinese stocks which had repercussions on stock markets around the world.

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Emerging Opportunities in Emerging Markets
May 29, 2006
From The Motley Fool:
 Portfolio diversification is not a new concept, though it can be a foreign one. By that, I mean that investors like you and me can often reduce our overall equity investing risk by buying into overseas markets.

True, buying into hot overseas bourses can be a bit of a gamble. Dave Mock recently looked at some of the hottest international markets of 2006; the returns may startle you.

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Fidelity launches fund for emerging markets
May 29, 2006
From Fund Strategy:
 Fidelity International is to expand its offshore fund range with the launch of the Emerging Europe, Middle East and Africa (EMEA) fund in June.

The fund is to be managed by Nick Price. He has not managed a fund before but has run emerging EMEA assets over the past two years.

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Emerging-Market Bonds Advance as Demand for Risky Assets Rises

May 22, 2006
From Bloomberg:
 Emerging-market bonds rose as demand for riskier, higher-yielding assets rises while dollar debt sales from countries such as Brazil and Mexico declines.

The average spread, or extra yield, for developing countries' bonds over U.S. Treasuries fell 1 basis point, or 0.01 percentage point, to 1.52 percentage points, according to JPMorgan Chase & Co.'s EMBI Plus index. The yield spread touched 1.5 percentage points yesterday, the lowest since JPMorgan introduced the index in 1997.

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Vodafone Unveils Emerging Market Phones

May 21, 2006
From International Business Times:
 Vodafone Group PLC, the world's largest mobile phone operator, Monday unveiled two ultra-low-cost handsets to target emerging markets, such as India and Africa.

Building on its recent $10.9 billion acquisition of India's fourth-largest operator Hutchison Essar Ltd., the Great Britain-based company furthered its push into high-growth emerging markets with a "'no frills"' Vodafone-branded phone, manufactured by China's ZTE Corp, that will sell for less than $45.

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HSBC launches global emerging markets equity fund

May 16, 2006
From Investment Executive:
 HSBC Investment Funds (Canada) Inc. has launched the HSBC BRIC Equity Fund, providing investors with access to the substantial opportunities anticipated from the high-growth emerging market economies of Brazil, Russia, India and China (BRIC).

“High growth emerging markets offer exciting investment possibilities. However, the challenge for the average investor in these very diverse and dynamic markets is to consistently find the most promising opportunities. Our new HSBC BRIC Equity Fund is built on the extensive emerging markets expertise and resources of the HSBC Group, giving investors a solution to tap into these growing economies with more confidence,” said Marc Cevey, CEO of HSBC Investment Funds (Canada).

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Pimco's Gross Recommends Emerging-Market Local Debt, Currencies

May 16, 2006
From Bloomberg:
 Bill Gross, manager of the world's biggest bond fund, said developing nations' local bond and currency markets may provide the best returns this year as their strengthening economies lure foreign investment.

Gross, who manages Pacific Investment Management Co.'s $100 billion Total Return Fund, also recommended investments in commodities, whose rally has spurred the expansions in emerging- market countries such as Brazil and Russia. He said Pimco will invest in more foreign currencies as slowing U.S. growth continues to push down the dollar. 

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Goldman Sachs: China at risk of "market euphoria"

May 10, 2006
From MarketWatch:
 China's booming A-share market could turn into a bubble if speculation among exuberant retail investors is not curbed, Goldman Sachs warned Thursday, as the Shanghai Composite Index hit yet another intraday record high.

"Market trading statistics, liquidity indicators, and anecdotal evidence all point to optimistic, if not exuberant, sentiment in the domestic market," said Thomas Deng, analyst at Goldman Sachs, in a Thursday research report.

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Emerging Market Index Tops 1000 on Prospects for Profit Growth

May 7, 2006
From Bloomberg:
 Emerging market stocks rallied a fourth day, pushing Morgan Stanley's benchmark index for developing country shares above 1000 for the first time, on confidence that exports will spur economic growth and consumer spending.

Samsung Electronics Co. Ltd., the second-largest semiconductor maker, led the gain today after a U.S. jobs report spurred speculation that the Federal Reserve will cut interest rates this year in the biggest market for exports. Benchmarks in South Korea, Malaysia, Indonesia, Hungary, Peru and Chile were at records.

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Investing in the Emerging Markets Century

May 2, 2006
From The Daily Reckoning:
 The Ruhr Valley was the heart of Germany’s industrial might. For more than 200 years, the smokestacks in this northwest corner of Germany pounded out the steel and iron that would form the backbone of the nation’s industry. And when the war drums rumbled, these factories supplied imperial Germany with its field guns, armored tanks and shells.

Prosperous communities grew up around these old blast furnaces and mills. People took pride in the stuff they could make with their hands. Tens of thousands found work in the factories of the Ruhr. Generations passed with the knowledge that their sons and daughters could make a life here and carry on the legacy of such a place. For a long time, that was the way it went.

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Around the Markets: Emerging-market currencies looking safer than ever

May 1, 2006
From The International Herald Tribune:
 Investments in emerging-market currencies, from the Mexican peso to the South Korean won, have never been safer.

The cost of options to protect against fluctuations in emerging markets fell last week to a record low, a sign that investors have grown more confident in the stability of developing countries, according to data compiled by JPMorgan Chase.

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Borat Can Laugh, but Offbeat Markets Are No Joke to Funds

April 24, 2006
From Morningstar:
 Perhaps the turning point came in August 2006, when Vanguard Emerging Markets Stock Index (VEIEX) changed its guidelines.

Up to that point, the fund had excluded some of the countries featured in MSCI's standard emerging-markets index because of trading complications or other factors. Over the years, Vanguard had allowed in country after country as their conditions improved, but a few--including Russia, which had become more and more prominent in actively managed portfolios--were still left out. Then in August, Vanguard tossed out its custom index and simply adopted the MSCI Emerging Markets Index as its benchmark. Immediately Russia became the third-largest stake, with more than 10% of assets.

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Profiting from an Emerging Market Bubble

April 24, 2006
From SeekingAlpha:
 FTAlphaville had an interesting research note from Merrill Lynch about emerging markets.

The premise is that when the Fed begins to cut rates, it could create an emerging market asset bubble making the returns of the last few years look small.

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EMERGING MARKETS: ‘Wild’ side tamed

April 16, 2006
From Pensions & Investments:
 Emerging market debt and equity, once considered a walk on the wild side, are fast becoming a popular choice for investors who place a high value on sleeping well at night.

The “wild” image emerging markets once had is out of date, and a growing number of investors are concluding that “you can’t not be there,” said James Upton, a senior portfolio specialist and chief administrative officer for the emerging markets equity team at New York-based Morgan Stanley Investment Management.

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Art and the alternative emerging market

April 15, 2006
From Gulfnews.com:
 Equity connoisseurs will be familiar with the excitement generated by the emerging Bric market (Brazil, Russia, India and China) - countries with huge populations, ancient cultures and a fast-growing wealth culture.

With that backdrop, it doesn't take a great deal of imagination for wealth connoisseurs to picture Christie's view of the future growth of an "emerging art world".

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Risks growing in world financial markets, IMF says

April 10, 2006
From Monsters and Critics:
 A weakened US home-mortgage market and a wave of corporate buyouts by equity firms have heightened risks in global financial markets, the International Monetary Fund said Tuesday.

Fast capital flows into some emerging market economies and an unprecedented globalisation of financial flows could also threaten financial stability in case of a sudden 'volatility shock,' the IMF report said.

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Emerging Markets Still At Risk

February 5, 2006
From Forbes:
 Concerns are growing about the sustainability of capital flows into emerging markets and their effects on domestic policies and asset prices in recipient countries.

Net private capital flows to emerging-market economies are estimated by the Washington, D.C.-based Institute of International Finance (IIF) to have totalled $502 billion in 2006. These are forecast by the IIF to moderate to $469 billion in 2007.

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Americans' Foreign Fling

February 4, 2006
From Barron's Online:
 LUST OF ALL KINDS FEELS RIGHT AT THE TIME but can get you in trouble. This includes the wanderlust now captivating American investors, as reflected in their ardor for sending their investment dollars abroad.

Since the start of 2005, 85% of all net inflows into stock mutual funds went to international funds, says Citigroup, and last year the percentage going abroad was more than 92%.

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Risky countries, safe companies

January 23, 2006
From The National Post:
 Last year, the emerging markets category was one of the three top-gaining asset classes for the fourth year in a row.

A 33% return put emerging markets in third place in the year just ended, compared to top spot in 2004 and 2005. The newer and more focused "BRIC" category (Brazil, Russia, India and China) was in top spot with a 56% return in 2006, according to a soon-to-be-released asset class chart Franklin Templeton publishes each year.

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Vietnam's Effort to Cool Stocks Reflects Challenges for Emerging Markets

January 22, 2006
From The Wall Street Journal:
 Following spectacular returns in some Asian markets in the past year, which have increased concerns about a correction, some regulators are urging vigilance to prepare Asian markets for still-greater inflows. At a symposium in Tokyo on Monday marking the 10th anniversary of the region's currency crisis, Bank of Japan Gov. Toshihiko Fukui noted the priority of strengthening the functioning of the region's foreign-exchange and financial markets in increasing Asian countries' ability to absorb external shocks from massive capital flows.

In China, where regulators last week imposed a profit tax on real-estate developers, hammering property stocks, the benchmark Shanghai Composite Index, ...

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Emerging-market hedge funds lead pack

January 17, 2006
From InvestmentNews.com:
 Hedge funds concentrating on emerging markets rose 20.49% and performed better than any other hedge fund strategy in 2006, according to data from New York-based Credit Suisse's Credit Suisse/Tremont Hedge Fund Index.

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Emerging Opportunities In Emerging Markets

January 17, 2006
From Forbes:
 International stocks shot the lights out again last year. For a fifth year in a row, the Morgan Stanley Capital International EAFE Index outpaced the U.S. market. An investment of $10,000 in MSCI's index on Jan. 1, 2002, would now be worth about $20,500.

A similar investment in the S&P 500 would be worth just $13,500. Emerging markets such as China and India have been even more rewarding. Your $10,000 would have grown to $36,000 if you invested in Chinese stocks. India? At an annualized 37% clip, you'd have almost $80,000 in your pocket.

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Emerging Stock Markets Face the $1 Trillion Curse: David Wilson

January 11, 2006
From Bloomberg:
 Will $1 trillion become a curse for the four-year rally in emerging-market stocks, as it was for the Internet bubble of the 1990s?

The question arises because the value of China's stock market exceeded this threshold yesterday and Russia's did so last month, according to data compiled by Bloomberg. Before then, no emerging market had ever been so large.

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Ghosts of '97 Continue Haunting Emerging Markets

January 11, 2006
From TheStreet.com:
 2006 was a boom year for emerging markets: The iShares MSCI Emerging Markets Index (EEM - commentary - Cramer's Take - Rating), a proxy for emerging markets worldwide, grew by 22%. Regional markets in Southeast Asia fared better still. The FTSE ASEAN Index, which tracks equities in Indonesia, Malaysia, Philippines, Singapore and Thailand, surged 31% last year, while the Shanghai stock exchange soared by over 125%.

But routine questions over whether this kind of growth is sustainable have taken on more serious tones amid a new round of political instability in Thailand specifically and weakness in emerging markets generally.

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Emerging markets: Should investors keep off?

December 26, 2006
From rediff News:
 If anyone needed a reminder that investing in emerging stock markets can be a gut-wrenching business, the madness that transpired at the Bangkok Stock Exchange on Dec. 19 surely delivered the message. Thailand's benchmark SET Index plummeted 15%, which qualifies as a crash in just about anybody's book. It was the worst one-day downturn in 16 years.

Other emerging markets in Malaysia, Pakistan, Turkey, and India (which has suffered a severe correction this month) were all down as well in trading on Dec. 19. And all this follows an emerging-market blowout back in May. During the first three weeks of that month, the Morgan Stanley Capital International Emerging Markets Index, which tracks share price trends in 26 developing markets around the world, fell about 14%.

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Strategising Equities Exposed to Emerging Markets

December 26, 2006
From Resource Investor:
 Global equities are expected to continue performing well next year along with property but fixed income assets aren’t expected to perform as strongly. Reuter’s year-end poll of strategists and economists suggests many investors are banking on the world economy holding up next year despite a bit of a slowdown in the U.S. Euro zone and Asian equities are expected to outperform the U.S., according to the poll. Joining us on the line with his own views is Max King, he’s strategist at Investec Asset Management in London.

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Rewards and risks of emerging markets

December 18, 2006
From Sun-Sentinel.com:
 It's always nice to see patience rewarded in investing -- and even nicer if it happens without a long wait.

Just ask investors, myself included, in mutual funds and exchange-traded funds that specialize in emerging-markets stocks. We have enjoyed just such a happy experience in 2006.

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Emerging currency debt to boom on, carrying risks

December 17, 2006
From The Turkish Daily News:
 Emerging market investors have developed a huge appetite for debt denominated in local currencies, a trend that looks set to grow despite carrying the seeds of a potentially massive sector reversal.

Recent years have seen an explosion of interest in bonds in currencies from the Polish zloty to the Brazilian real as yields declined on dollar bonds, emerging investors' previous mainstay.

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The Emerging Markets' Time Has Arrived

December 3, 2006
From Barron's Online:
 WE LIVE IN THE AGE OF EMERGING MARKETS. Not only have China and India taken huge strides, but Brazil, Korea, Mexico, South Africa and many other countries are now home to huge, world-class companies. In another 50 years, the economies of today's emerging markets will eclipse those of the developed world in size. As Antoine van Agtmael suggests in his excellent new book The Emerging Markets Century, you only need to board an airplane in the modern, well-ordered airports of Seoul, Shanghai or Singapore and land in the chaos of snaking immigration lines, confusion and ...

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JPMorgan launches e-trading for emerging markets

December 1, 2006
From MoneyWeb:
 JPMorgan has launched electronic trading in interest rate swaps (IRS) for a range of emerging market currencies, the bank said on Friday.

It said it was the first dealer to provide the electronic facility for swaps in the Czech crown, Hungarian forint, Polish zloty and South African rand, in addition to the major currencies already available on its existing platform.

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Foreign investors facing new risks and realities in emerging markets

November 27, 2006
From The London Free Press:
 Foreign investment has become a key growth strategy for North American firms, particularly investment in emerging markets. But a new investment reality has begun to emerge that is causing companies to recalibrate the risks they face in expanding globally.

In the past, most emerging markets saw themselves in a competition for foreign investments. That's why, during the 1990s, an investor-friendly paradigm came to be taken for granted in much of the emerging world. Emerging markets' commercial, legislative and regulatory regimes gradually evolved into a zone that the majority of foreign investors could tolerate, even welcome.

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HSBC Seeks Growth in Emerging Markets as U.S. Slows, Green Says

November 27, 2006
From Bloomberg:
 HSBC Holdings Plc, Europe's biggest bank by market value, is counting on an expansion in the emerging markets of Asia and Latin America to counter a slowdown in Britain and the U.S., Chairman Stephen Green said.

London-based HSBC and rivals such as Citigroup Inc. are seeking to tap markets including China, where the economy is growing about three times as fast as the U.S. Indonesia and Vietnam are also countries where HSBC is looking to harness growing demand for consumer banking, Green said. 

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Vodafone signals emerging market M&A interest

November 12, 2006
From MarketWatch:
 Vodafone Group PLC (VOD) has signaled it's interested in more acquisitions in emerging markets and is eyeing selective opportunities in Africa, Asia or eastern Europe, the Financial Times reports Saturday, citing people familiar with the company.

The paper said the people familiar with Vodafone cautioned that no deals were imminent.

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Emerging markets regain record-setting pace

November 11, 2006
From MarketWatch:
 After a massive wave of selling from May to August, investors are showing renewed interest in emerging-markets stock funds.

Funds dedicated to emerging markets attracted $705.5 million in net inflow, Emerging Portfolio Fund Research Inc. reported Friday. That was the fifth straight week of positive results, said Brad Durham, managing director at the fund-tracking firm.

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Bank the emerging market gains

November 1, 2006
From ThisIsMoney.co.uk:
 Savers with emerging markets investments have enjoyed years of dazzling returns, but they should now rebalance their portfolios, switching profits into other core assets.

While global stock markets have performed strongly in the past three years, the emerging markets of Asia, South America and Eastern Europe have done particularly well.

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Emerging-Market Bonds Rise on Expectations for Lower U.S. Rates

November 1, 2006
From Bloomberg:
 Emerging-market bonds advanced for the first time in six days on expectations the U.S. Federal Reserve's next move may be to lower borrowing costs, preserving demand for risky assets.

"U.S. interest rates will probably go lower,'' said Raphael Kassin, who helps manage about $4 billion as head of emerging- market securities at ABN Asset Management in London.. ``The emerging market is very strong, supported by U.S. Treasuries.''

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Fed's Geithner: U.S outlook complicated by global factors

October 26, 2006
From MarketWatch:
 The policy of many emerging market governments, including China, to accumulate large official reserves, is distorting market signals and adding to the considerable degree of uncertainty the Fed faces about the longer-term outlook for the U.S. economy, said Timothy Geithner, the president of the New York Fed bank on Thursday. Emerging market economies are hoarding reserves as a cushion against external vulnerability but also from "a lingering aversion to letting exchange rates adjust upwards in response to market forces," Geithner said in a speech at Columbia University.

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Deutsche bolsters emerging market debt

October 24, 2006
From FinancialNews-US.com:
 Deutsche Bank has named two senior deal structuring specialists across debt and equity products as it seeks to grow its business across emerging markets.

Daniel Morley and Niall Smith have been promoted internally, with the pair taking on responsibility as global heads of emerging market debt and equity structuring, respectively.

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India most attractive emerging market: Faber

October 17, 2006
From Financial Express:
 Investment guru Marc Faber is well known for his contrarian views. His monthly investment newsletter, The Gloom, Boom & Doom Report—which highlights unusual investment opportunities, is widely read by experts. Once MD of Drexel Burnham Lambert (HK), he set up his own investment advisory firm in 1990. In an e-mail interview, Faber answers questions from Jitendra Kumar Gupta on investments in Asia and Indian markets. Excerpts:

Do you think the Indian markets are still expensive compared to other emerging markets?

Is one mistress more expensive than the other because one of them has a higher price/pleasure ratio than the other? Difficult to tell! Compared to other emerging markets, India is expensive. As I said in the past, of all emerging economies, India has the biggest economic potential. This does not mean the stock market will always rise, but it means the economic and corporate sector conditions could be favourable for much longer and lift corporate profits for quite some time (20 years).

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Emerging-Market Funds Snap 6-Week Loss; China Draws More Buying

October 13, 2006
From Bloomberg:
 Emerging-market stock funds garnered more money than they lost last week, snapping six weeks of withdrawals, as those investing in China attracted more investor buying, according to Merrill Lynch & Co.

Inflows to funds that invest in shares of developing countries totaled $366 million on a net basis in the week ended Oct. 11, Merrill said in a note to clients dated today, citing weekly figures from Emerging Portfolio Fund Research. 

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United Kingdom: Investing In An Emerging Market?

October 12, 2006
From Mondaq:
 There is an increasing trend for property investors to invest in emerging markets, particularly Bulgaria and Romania, as these countries are expected to join the European Union (EU) on 1 January 2007.

In many cases, property funds are being established in these countries for the purpose of investment in commercial and residential properties.

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Emerging market currencies poised to fall

October 10, 2006
From MarketWatch:
 After a rocky period in May and a sell-off in late September, emerging market currencies are in trouble again.

Political uncertainty and deficit problems, notably in Central and Eastern Europe and Latin America, have resurfaced as major concerns, analysts say. The situation could worsen in the event that a protracted slowdown in the U.S. begins to affect global growth.

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Around the Markets: Rebound in emerging markets

September 29, 2006
From International Herald Tribune:
 Emerging stock markets rebounded in the third quarter from their steepest drop since 2002 as investors anticipated that domestic economic growth would fuel demand for consumer goods.

Standouts in the quarter, including China Mobile and Wal-Mart de México, may extend their gains because incomes are rising at a faster pace in developing countries than in the United States.

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Innovation needed in emerging markets, says report

September 29, 2006
From Business Edge:
 Innovation is the key to opportunities in emerging markets, says a new report.

But Canadian manufacturers must confront new challenges to leverage these opportunities, says the Deloitte report.

More than half of the global manufacturers surveyed expect to substantially grow revenues in emerging markets over the next three years, with nearly three-quarters anticipating big increases in China.

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ANALYSIS - Emerging market crisis? That was then, this is now

September 20, 2006
From Reuters:
 Almost a decade after being battered by the Asian financial crisis, emerging market investors are getting a worrying reminder about political risk from the streets of Budapest to the barracks of Bangkok.

This time, however, they reckon things are different and lessons have been learnt. Greater diversification and more sophisticated scrutiny of assets mean global investors are better able to cope with sudden surprises in any one country.    

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Brazil, Russia May Withstand Emerging Market Drop, Pimco Says

September 18, 2006
From Bloomberg:
 Brazil and Russia are likely to have the best-performing emerging market debt as the U.S. economy cools and commodity prices slump, according to Pacific Investment Management Co.

Brazil has reduced its dependence on external borrowings while Russia has amassed significant currency reserves, which will help both countries ride out another slump in emerging market securities, said Michael Gomez, who oversees about $30 billion of emerging market debt at Pimco in Newport Beach, California. Mexico also ranks high because of falling ex