Economics
Emerging Markets Face Reckoning as Economic Clouds Darken
- EM stocks set for best quarter since 2010, bonds since 2009
- Yet the economic outlook is the worst since at least 1960
Commuters wearing protective masks walk onto excalators inside the Luz train station in Sao Paulo, Brazil, on June 22.
Photographer: Jonne Roriz/BloombergThis article is for subscribers only.
A disconnect is growing in emerging markets, which have rarely faced such dire economic conditions and yet whose assets are about to round out their best quarter in a decade.
The MSCI Emerging Markets Index is on track to post its best quarterly gain since 2010, while dollar bonds are poised for their biggest quarterly advance since the 2009 recovery from the global financial crisis. The tidal wave of central-bank stimulus sweeping the world has supported risk appetite.