In the past decade, mutual funds poured almost $70 billion into Brazil, Russia, India and China, stocks more than quadrupled gains in the Standard & Poor’s 500 Index and the economies grew four times faster than America’s.
Sri Lanka’s benchmark stock index, the world’s worst performer this year, may extend its slump as the central bank raises interest rates to curb inflation, according to HSBC Holdings Plc’s private banking unit.
HSBC Private Bank is shifting funds to shares in developed nations and cutting holdings of bonds and stocks in emerging markets, predicting asset prices will drop as much as 10 percent as developing nations raise interest rates.
Auto companies, clothing retailers and appliance makers are posting the fastest profit growth in emerging markets, fueling a rally in developing-nation consumer shares after they fell to the cheapest level in three years.
The Shanghai Stock Exchange said it’s “basically ready” to let foreign issuers sell stock, paving the way for companies from HSBC Holdings Plc to Coca-Cola Co. to list in the world’s second-biggest equity market.
Indian stocks climbed to their highest level in 14 months after the government raised diesel prices for the first time in more than a year and the U.S. Federal Reserve announced a third round of stimulus measures.