Focus switches to other emerging markets as Famous Five ride out election risks

viernes 23 de mayo de 2014 11:02 GYT
 

* Fragile Five elections pass off smoothly, reforms embraced

* Focus switches to elections in Ukraine, Egypt this weekend

* Coup in Thailand, security in Nigeria also worry investors

* New governments have to meet both market, voter expectations

By Carolyn Cohn

LONDON, May 23 (Reuters) - Elections from Jakarta to Johannesburg have calmed investors' worst fears about political risk in emerging markets this year, but voting in Cairo and Kiev and instability in Thailand and elsewhere are creating new concerns.

Polls in the so-called Fragile Five economies - Brazil, India, Indonesia, Turkey and South Africa - topped investors' list of political worries for 2014.

As these countries were dubbed 'fragile' because of their reliance on foreign investor flows to shore up government balance sheets, elections were seen likely to lead to more spending and more instability.

Presidential polls in Brazil and Turkey are still to come, but parliamentary elections in India and South Africa and local elections in Turkey have been greeted with enthusiasm by investors.   Continuación...