EMs beat developed markets in March

Mixed-chartStock markets bucked the trend of the last year in March with emerging markets gaining while developed markets fell.

Colombia, with growth of nearly 15%, led the emerging markets, which in total grew nearly 3% during the month, according to S&P Dow Jones Indices.

In contrast, developed markets fell 0.12% overall with Ireland the biggest loser, its equity index decreasing 6%.

“Concerns over the Russian-Ukrainian situation pushed markets lower,” says Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. “The main concern was not over the single annexation of Crimea into the Russian Federation, but of possible future expansion.”

Not all developed markets performed poorly. Italy gained more than 6% in March and New Zealand gained more than 5%. But this growth lagged far behind that seen in Turkey, India and Brazil, which each saw their stock indices rise more than 10%.

The results are leading to speculation that emerging market assets have hit bottom after a difficult 12 months. The emerging market index from S&P Dow Jones is down nearly 4% in the year ending March, while the developed market index had risen more than 17%.

©2014 funds europe