Benchmark gauges in the Czech Republic, South Africa, Thailand and the Philippines fell at least 2.4 percent. South Korea’s Kospi Index (KOSPI) to an 11-month low, while
The Borsa Istanbul Stock Exchange National 100 Index tumbled to the lowest level since November 2012.
The lira fell to its lowest level on a closing basis since at least 1981 as Turkey’s central bank’s planned dollar sales failed to stem the fallout from a signal to scale back U.S. stimulus. India’s rupee fell, extending a seven-week slide, as global investors boosted sales of local bonds and stocks.
Extra Yield
The extra yield for emerging-market debt over U.S. Treasuries rose 10 basis points to 360 basis points, according to JPMorgan’s EMBI Global Diversified Index.
The only three emerging-market stock pickers who avoided losing money for clients in the worst first-half rout since 1998 say now’s the time to buy Philippine retailers, Chinese Internet companies and Indian drugmakers.
Lewis Kaufman, whose Thornburg Developing World Fund (THDAX) rose 3.2 percent, the most among U.S.-domiciled emerging-market mutual funds overseeing at least $100 million, says Manila-based Puregold Price Club Inc. (PGOLD) will benefit from 20 percent sales growth.
CNI Charter Emerging Markets Fund’s Anindya Chatterjee boosted his position in Shenzhen, China-based Tencent Holdings Ltd. (700) as first-quarter profit rose 37 percent.
David Semple has been buying Indian pharmaceutical shares for the Van Eck Emerging Markets Fund as the rupee’s tumble boosts exports.
The managers say they weathered this year’s slide in the MSCI Emerging Markets Index by making prescient currency bets and buying companies insulated from economic swings and government interference.