India boosts emerging market ETFs as US yields dip, dollar falls
Indian equities, followed by Taiwanese and South Korean stocks. “Ultimately, India stands out as its own story, as it offers more attractive scale and demographic dividends than most emerging markets, and does so under a democracy," said Malcolm Dorson, the head of emerging-market strategy at Global X Management Co.
“It’s also coming from a much lower base than most emerging markets, which translates into more growth opportunities." Last week, India reported that its economy grew at a much faster pace than forecast in the third quarter as manufacturers boosted production, consumption picked up pace and Prime Minister Narendra Modi’s government ramped up investment before polls next year. The case for emerging markets has also been boosted by market bets that the Federal Reserve is nearing the end of its tightening cycle, leading the asset class to record its best rally in 2023 in November.
Meanwhile, pessimism in China continues to make traders wary of their exposure to local assets, as a deepening property slump threatens to wipe out jobs, adding to the drivers threatening the country’s growth potential in 2024. Inflows to U.S.-listed emerging market ETFs that invest across developing nations as well as those that target specific countries totaled $1.08 billion in the week ended Dec.
1, compared with gains of $766.5 million in the previous week, according to data compiled by Bloomberg. So far this year, inflows have totaled $11.2 billion.
Read more on livemint.com
