By Yazhou Sun, Bloomberg Live
The much-awaited emerging market rally 2.0 is well underway. Investor’s risk appetite got a boost after Joe Biden’s US presidential win and positive vaccine developments, pushing the MSCI Emerging Markets Value Index to jump 5% in the week after November 9. At Bloomberg’s “Emerging Equities” virtual event on November 18, we convene leading investors and analysts to identify risk and opportunities and draw the roadmap for growth.
- Jingyi Pan, Senior Market Strategist, IG Asia
- Dr. Mark Mobius, Founding Partner, Mobius Capital Partners
- Jackie Edwards, Asian Equities Reporter, Bloomberg
- Hugh Young, Head of Asia Pacific, Aberdeen Standard Investments
Moderated by: Haslinda Amin, Anchor, Bloomberg Television
Click here to view video of the full discussion.
- Dr. Mark Mobius, Founding Partner of Mobius Capital Partners, believes emerging markets will see a V-shaped recovery thanks to a Joe Biden presidency, positive vaccine development, and broad technology adoption. Mobius says despite the strong demand for cloud technology and semi-conductors, some tech bubbles are doomed to burst. When asked about Ant Financial’s suspended IPO, Mobius says “If you look at Europe, they’ve been cracking down on tech giants in regards to tax, and in the US, there’s concern about its impact on the mentality of people and society in general.”
- Jackie Edwards, Bloomberg’s Asian Equities Reporter, says some countries are seeing a shift from growth-valued shares to value shares. Edwards says as we get closer to a vaccine, investors are picking out which nations are better prepared to distribute vaccines quickly, and sizing up different governments’ scope to take on debt should they want to roll out vaccine freely or at subsidized rates. Edwards says a weakened US dollar also gives investors a reason to invest in EM stocks. “When you consider things like the implications of a widening U.S. deficit, possibly more stable US foreign policy and lower bond yields, all of that points to a softer US dollar and all of that could be positive for stocks and notably Asian assets,” Edwards says.
- Hugh Young, Head of Asia Pacific at Aberdeen Standard Investments says with huge debts at Chinese SOEs, political tensions persisting in countries like Thailand, Turkey, Brazil and Peru, investors should stay cautious and not put “all your eggs in one basket.” Young says “the important thing really is to stick through cycles and become slightly countercyclical as well.” Young also says the newly-signed Regional Comprehensive Economic Partnership (RCEP) is a reminder for investors to look beyond North Asia and explore opportunities in Asean. He foresees more appetite for US investors venturing overseas, particularly with the hawkish political rhetoric easing.
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