Myths Create Fear in Emerging Markets

Lamudi, an online real estate dealer with operations in 28 countries in the Middle East, Asia, Africa and Latin America, argues there exist widespread myths that may stop Western companies from taking advantage of “exciting” opportunities offered by emerging markets.

http://tinyurl.com/ozt753k

Emerging Market Stocks Advance for Sixth Day

Emerging-market stocks rose for a sixth day as a rally by telecommunication and energy shares overshadowed Chinese data showing the nation’s housing slump deepened. Russia’s ruble appreciated the most among its peers.  China Mobile Ltd. advanced to the highest level in almost six years as Nomura Holdings Inc. lifted its price target. OAO Gazprom gained as much as 1.2 percent to lead increases in Russia. The ruble strengthened 0.3 percent versus the dollar after the central bank widened its trading range against a basket of currencies. Indian stocks surged to a record high.

http://tinyurl.com/oa7rpyc

Bitcoin Momentum Grows in Emerging Markets

Bitcoin is gradually making progress as a medium of exchange in developing countries. While it can be volatile as an investment asset, it has real utility as an instrument for payment and money transfer, especially in places where conventional payment systems are immature. Because Bitcoin facilitates instant payment through peer-to-peer technology, most transactions can be completed in less than 10 minutes no matter how distant the two parties are. In addition, each transaction is recorded in a public ledger, enhancing transparency and trustworthiness.

http://tinyurl.com/k3lbt8e

Time to Invest in Emerging-Markets Stock Funds?

It has been a frustrating time for emerging-markets investors lately.  First, they had to watch as U.S. stocks went on a tear last year, while emerging-markets stocks headed in the opposite direction. Many investors lost patience; they yanked more than $15 billion from emerging-markets exchange-traded funds in the three months through January of this year, according to the Lipper unit of Thomson Reuters Corp.

http://tinyurl.com/nl6oofp

Emerging Market Stocks Advance on China

Emerging-market stocks rose, extending a weekly gain, as a gauge of Chinese mainland shares traded in Hong Kong entered a bull market. Russian stocks and its currency slumped amid the threat of further sanctions.  China Coal Energy Co. climbed to its highest level in seven months after the nation’s industrial-profit growth accelerated. Hyundai Steel Co. gained 5.3 percent in Seoul after profit beat analyst estimates. OAO Rosneft dropped 1.9 percent, while the ruble weakened 0.7 percent. Former majority owners of Yukos Oil Co. said they won a $50 billion award against Russia. 

http://tinyurl.com/mvs4sqv

Emerging Market Debt Issuance Hits Record High

Emerging and frontier market countries have borrowed a record amount of money in capital markets in the first half of this year, even as central bankers warn that “debt market euphoria” could be storing up trouble for the future.  International sovereign bond sales by emerging markets reached $69.47bn in the first six months of the year, a jump of 54 per cent on the same period in 2013.

http://tinyurl.com/qh7tvee

Fund Managers Ignore Borders to Chase Profits

U.S. emerging market fund managers are paying less attention to where a company is located or listed than to whether it's making money, either as an advanced world company doing business in the developing world, or the other way around.  A top holding in the $710 million Ivy Emerging Markets Equity Fund, the best performing diversified emerging market fund over the last five years, is Las Vegas Sands Corp, the U.S.-based casino operator that generates most of its revenue in Macao. 



http://tinyurl.com/nn9trtu

Emerging Markets Output Growth Strongest Since March 2013

Business activity in emerging markets expanded last month at its fastest rate since March 2013, boosted by strong growth in China and India, a survey showed on Monday.  HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys jumped to 52.3 in June - well above the 50 threshold that indicates expansion - from 50.6 in May.  Services activity growth hit a 15-month high and manufacturing output also rose, HSBC said.

http://tinyurl.com/kwa8453

Emerging Markets ETFs Hauling In Cash

Rebounding equities throughout the developing world are spurring investors to rush into the exchange traded funds that hold those stocks. Investors are also paying up for the privilege.  The Vanguard Emerging Markets ETF, the largest emerging markets ETF by assets, now trades at a 0.2% premium to the value of its underlying holdings good for the ETF’s widest gap in two years, report Boris Korby and Edith Waringa Kamau for Bloomberg.

http://tinyurl.com/pclgxau

Mark Mobius Says Buy Russia and Nigeria

Mark Mobius is a superbull. In fact, he’s confident that the global markets are facing a five-year bull environment, as massive liquidity injections from central banks will start to do the trick.  And then things will start to happen: Emerging markets will outperform. Nigeria will attract lots of attention. Even Zimbabwe is looking like an interesting investing opportunity.  “The U.S. outperformed emerging markets last year, [and] now emerging markets are coming back and outperforming,” Mobius, executive chairman of Templeton Emerging Markets Group, said in an interview with MarketWatch on the sidelines of this year’s FundForum International in Monaco.

http://tinyurl.com/qylgr7g