PRESS ROOM
Emerging markets build on recent positive momentum
Wednesday 06th January '21
Emerging market (EM) equities have started the new year strongly adding to their gains from last year. The MSCI Emerging Markets Index is up around 74% from its lows in March 2020 (in USD terms) and has even outpaced the S&P500 Index. In addition to the positive risk sentiment in global equity markets recently, emerging markets are benefiting from a persistently weak US dollar. A weak dollar makes it easier for emerging markets to service their dollar-denominated debt. Strength in Chinese stocks is also helping the emerging markets more broadly on account of their weight in EM equity indices.