On Monday, emerging market stocks in high-priced markets entered “bull-market” territory. A China-driven surge on Asia’s largest bourses pushed MSCI’s main EM index 20% over its previous major trough in Oct.
The MSCI Emerging Markets Index of 24 countries (.MSCIEF) jumped 2.4% in its 5th consecutive session of gains on Monday.
The index has recovered over half of its previous ground after hitting a 2-1/2-year low in October. Its recovery was made possible by a combination of global easing, a weaker currency, and China lifting COVID-19 limitations.
Chinese stocks, which represent a third of the MSCIEF index and much more when China-focused firms are included elsewhere, have increased almost 45% since their lows.
South Korean stocks have also seen an 18% to 20% increase in stocks with respective 13.8% or 11.3% MSCIEF Weightings.
Reporting by Marc Jones; Editing by Hugh Lawson
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