Mobius Joins Goldman Bet on China Boost for EM Equities
- Investor sees pool of money coming into EM indices expanding
- Goldman Sachs raised China to overweight in Asia strategies
Emerging-market equities will be boosted by stimulus measures in China thanks to the country’s large weightings in indices and close economic ties with other developing countries, according to veteran investor Mark Mobius and Goldman Sachs strategists.
China accounts for one quarter of the benchmark MSCI EM equity index and it means when China markets rally, the index also moves up. Stimulus measures, coupled with a Federal Reserve interest-rate cut, helped emerging-market equities jump 10% from mid-September lows.