Sun to continue shining on EM equities

Emerging market equities have delivered strong returns in the past month, outperforming their developed market counterparts. A confluence of factors is probably responsible. This includes signs of stabilisation in commodity prices at lower levels, an associated rebound in some emerging market currencies, a sense that the pace of monetary tightening in the US may be slower than previously envisaged and actual monetary loosening in a number of emerging market countries themselves.