Research & Insight

October proved to be a more volatile month for equity markets as investors began to assess the relative merits of the "reflation trade" in light of the expectations of higher interest rates in 2010 and of a potentially prolonged period of time before any significant earnings recovery emerges.

Hark! A new financial sub-sector for the Korea Stock Exchange Index (KOSPI)!

Long life or short life… or non-life?

Market review

The MSCI Emerging Markets index rose 21% in the third quarter of 2009 and has surged 60% in Q2/Q3’09, making them the best two quarters of return on record. Year-to-date the MSCI Emerging Market index has...

In the third quarter the MSCI Asia ex Japan index rose by 18.99% - another strong performing quarter.

Although a hot topic throughout most of 2008, decoupling faded away last autumn as emerging markets collapsed. Among the most pessimistic claims was the idea that it makes no sense to discuss decoupling in an era of globalisation that is increasingly synchronizing business cycles. Supporting this view was the sharp rise in emerging market bond yield spreads and a decline in emerging equities up until the end of the first quarter of 2009.