Tug of War Between Stimulus, Virus Leaves EM Investors Torn
- JPMorgan Asset sees ‘considerable performance dispersion’
- Brazil set to hike rates; Turkey and Thailand seen on hold
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Emerging-market investors head into the first week of May with as many reasons to be gloomy as cheerful.
For all the support emanating from U.S. stimulus plans, dovish central banks and rising commodity prices, worries over India’s deepening Covid-19 crisis, escalating U.S.-Russia tensions and China’s Huarong debt saga may give buyers pause. Traders have become less bullish about the outlook for developing nations amid increasing inflation concerns, with most who sought refuge in cash not yet ready to put it to work, according to a survey by HSBC Holdings Plc.