LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Emerging markets brought the bears, now they have the bulls

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Sat, Jan 26, 2019
12:30 am
Reuters
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

This weekend marks a year since the start of one of most comprehensive global bear markets on record, but just as the developing world`s equity indexes were first to fold last year, now they are leading the charge back up.

Although there are a few subtleties this time, it largely fits with a pattern that stretches back decades.

During the global financial crisis, emerging market stocks dropped the 20 percent that defines a `bear` market three weeks sooner than the main global indexes and started to bounce back four months earlier.

It was a similar story in 2016 and when the dot-com bubble deflated in 2000. Back then EM also started to fall three weeks earlier, took less than a third of the time to reach bear territory and bottomed out 11 months sooner.

"You just have more volatility and a faster moving investor base in emerging markets," said Kiran Nandra-Koehrer at Pictet Asset Management. "So when fear tends to take over the market that can be a really interesting buying opportunity."

Last year`s rout saw EM and global indexes actually start their slides within hours of each other. But there were still plenty of familiar patterns to observe.

China`s heavy falls and even bigger hits for the likes of Turkey meant MSCI`s EM index was a bear market by September, whereas the all world index held out until Christmas.

U.S. tech bulls were still pushing the S&P 500 and Nasdaq to record highs up until late September and early October. At that point China was down 30 percent, EM overall had lost 23 percent and Turkey and Argentina had already troughed.Timeline of when markets entered `bear` territory: https://tmsnrt.rs/2B39pjOBut EM has led the rebound too. MSCI EM began to claw up at the end of October, two months earlier than the world index.

Analysts at Bank of America Merrill Lynch reckon funds have been putting money into EM stocks for the last 15 weeks and this month the index is up 7 percent, which is nearly as much as it surged last January before buckling so badly.

"We have seen more interest in EM assets for several months," said Aberdeen Standard`s head of global strategy, Andrew Milligan.

Another remarkable symmetry is that almost a year to the day since the bears first attacked, Turkish stocks have came full circle and achieved `bull market` status - 20 percent up from their lows.

It has been Brazil that has really set pace in that respect though.

Its main stock market started to rebound from a 20 percent drop in June and was already a bull market by the time far-right but reform-focused Jair Bolsonaro won the first round of presidential elections in early October. Brazilian stocks are now up 40 percent from their lows and at an all-time high.

Aviva Investors` head of multi-asset funds, Sunil Krishnan, started buying up more EM assets back in November.

"If we are right that U.S. macro is in reasonable shape and at least in some areas trade dialogue between the U.S. and China will improve and Chinese authorities will be more aggressive with stimulus... then it should be a constructive year for EM."Click for interactive graphic of the rolling global bear market https://tmsnrt.rs/2QCzyvmAll aboard the emerging market express: https://tmsnrt.rs/2S2mPX1Emerging market stocks in dollar terms since Jan 2018: https://tmsnrt.rs/2Hslpkm

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

LATEST NEWS

WhatsApp Pink - a new virus now threatens users accounts; find out what it is and how to stay safe

In a chat with Anil Singhvi, EaseMyTrip's Prashant Pitti explains about new pact with Just Dial

Anil Singhvi picks Strides Pharma as his 'SIP STOCK' today, know the reason WHY

​Maharashtra govt comes out with new precautionary measures - check list of restrictions here

KVS Class 1 Admission List 2021-22 Postponed: First selection and waiting list was to be released tomorrow, revised dates to be notified soon - check all details here

ACC Share price: ICICI Securities pegs target price at Rs 2250

Gold price today: Money to be made? Buy with price target of Rs 48350, says Anand Rathi

PUBG Mobile 1.4 update: Check global version beta update APK download link for worldwide users

Garena Free Fire redeem codes update: Check how to grab special redeem codes, free rewards and more

7th Pay Commission Latest News Today: BUMPER! Earn up to Rs 1.19 lakh as per 7th cpc matrix with HRA, DA, TA in this UPSC recruitment 2021 drive

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved