Chinese stocks, Russian rouble lead H1 emerging asset returns

lunes 29 de junio de 2015 11:12 GYT

By Sujata Rao

LONDON, June 29 (Reuters) - Shanghai shares have provided top-notch returns of 25 percent-plus so far in 2015, despite a 12 percent slump in June, vying with Russian assets and dwarfing the performance of most other emerging markets.

Broader emerging equities were barely in the black on Monday, just before the end of the first half-year, with a likely default by Greece adding to the pressure. Emerging hard currency sovereign and company bonds however have yielded positive returns, the following graphic shows:

Chinese shares have shrugged off weekend monetary easing which many viewed as reflecting authorities' alarm over flagging growth and have fallen 25 percent in the past 10 days. But Shanghai still looks set to close the first half of 2015 with gains of over 25 percent

Among the first-half equity winners is Russia, up 18 percent in dollar terms amid general cross-asset outperformance after the huge 2014 selloff.

But broader emerging equities are lagging developed peers for the fifth straight year. Most markets, from Brazil to Turkey to Malaysia, are in the red in dollar terms.

"If you took the Chinese rally out, I don't think you'd see a lot of markets that are up this year: Latin America not, India not," said Gary Greenberg, head of emerging markets at Hermes Investment Management.   Continuación...