Emerging markets may take their cue this week from a recovery in commodities and signs Chinas efforts to stem the spread of the Covid-19 are working.Gauges of stocks, bonds and currencies in developing economies all rose in the five days through Friday as raw-material prices had their best week this year.
Chinese officials urged the nation to meet its economic targets for 2020 as Hubei province, the epicentre of the outbreak, reported a slowing rate of new infections.Despite a rally since late January, emerging markets have underperformed stocks and bonds in the developed nations.
That trend should soon reverse, according to Pictet Asset Management, which oversees almost $600 billion of assets.Valuations in emerging markets, given whats going on, are more attractive than developed markets, Luca Paolini, the London-based chief strategist at Pictet, said in an interview.MSCI Inc.s index of emerging equities rose 1.3 per cent last week to pare its yearly loss to 0.8 per cent .
Currencies strengthened for the first time in four weeks, led by the Mexican peso, South African rand and Russian rubles.
Bloombergs gauge of commodities climbed for the first time since the week of January 3.