Emerging Market Era More Grind Than Go-Go After Rough Start

  • EM assets climb in first quarter, but lag developed peers
  • China re-opening lures cash into stocks, outflows hit debt
Morgan Stanley Likes Financials in Some Emerging MarketsPhotographer: Qilai Shen/Bloomberg
Lock
This article is for subscribers only.

A turbulent end of the easy-money era has deflated expectations for a boom year for battered emerging-market assets.

Brought down to earth by a volatile first quarter, the much-hyped EM investment story for 2023 is turning into one of resilience and hopes for decent returns — that is if fundamentals, not contagion risk, drive flows.