Emerging-market investors hope the worst is behind them
The next six to 12 months are looking positive, but analysts warn of a ‘bumpy and psychologically uncomfortable ride’
Dubai/Singapore/New York — An absence of bad news may be just enough to keep the rally in emerging markets on track even as many developing economies remain in pandemic-forced lockdowns. High-yield bonds are likely to be among investor favourites.
Gains in coming days would extend the advances of the past two weeks, spurred by optimism on Friday of a coronavirus treatment and the prospect of a staggered reopening of the US economy. Options traders are also betting that the worst of the rout may have passed. JPMorgan Chase’s implied-volatility index for emerging-market currencies has declined from the nine-year peak reached a month ago after a deluge of central-bank stimulus...
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