Upbeat Chinese Data May Not Ease Emerging-Market Taper Gloom

  • Fixed-income markets face rates and inflation threat: Arqaam
  • Consumer prices probably picked up in Taiwan, India and Brazil
Photographer: Qilai Shen/Bloomberg
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The prospect of rising inflation and U.S. Treasury yields may damp emerging-market sentiment, reflected by a slump in Chinese assets despite trade data that pointed to a speedier global recovery from last year’s lockdown.

Exports from the world’s second-biggest economy soared in the first two months of the year, data showed Sunday, reflecting a recovery in external demand and providing a much-needed boost for risk assets after a turbulent start to March. Meantime, the U.S. Senate passed a $1.9 trillion stimulus package Saturday that may offer an additional spur to countries such as Mexico whose economies are most sensitive to U.S. growth.