Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  Mark Mobius sees emerging markets at turning point after rout
BackBack

Mark Mobius sees emerging markets at turning point after rout

The MSCI Emerging Markets Index last week erased its decline for 2016 and has rallied 16% from a 2009 low in January

Mark Mobius. Photo: Bloomberg Premium
Mark Mobius. Photo: Bloomberg

Kuala Lumpur: Emerging markets are at a turning point with a reversal in sight, said Mark Mobius, executive chairman at Templeton Emerging Markets Group, signalling optimism after the worst annual rout in four years.

The “turnaround potential" for Asia is great amid growth in the region, Mobius said in a speech in Kuala Lumpur Tuesday. It “makes me happy" that investors are underweight on emerging markets, he said.

The MSCI Emerging Markets Index last week erased its decline for 2016 and has rallied 16% from a 2009 low in January, while a gauge of developing-nation currencies is 2% higher this year. Demand for riskier assets is rising as oil’s rebound from a 13-year low and cheaper valuations are outweighing concerns about China’s economic slowdown and the end of near-zero interest rates in the US.

While there is “maximum pessimism" in emerging Asia, China is still an “enormous growth story" while India is expanding at a “very nice rate," Mobius said. In Templeton’s view, the Malaysian ringgit is undervalued by 28%, and the country is an attractive prospect, he said.

Commodity prices bottoming out, Mobius said. He also said US markets have peaked and may either go sideways or down, which is good for emerging markets. The Federal Reserve may abandon raising interest rates this year, which will see money in search of better opportunities, he said. Bloomberg

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 16 Mar 2016, 02:13 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App