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Warning Signs Flash on Best Emerging-Market Stock Gain Since 2012

  • New Year optimism gives way to caution over equity outlook
  • Volatility may be too low to be good, ETF inflows stall
Stock Boards At Asia Plus Securities
Photographer: Dario Pignatelli/Bloomberg
Updated on

Emerging-market equity traders may be in for a reality check.

Rising profit forecasts and confidence that developing nations can withstand higher U.S. interest rates have sent stocks to the best start to a year since 2012. That optimism stands threatened this week after markets from Russia to Peru wilted under the pressure of oil prices below $50 a barrel.