Investment Adventures in Emerging Markets

China Lifts Foreign Investor Caps on Stock and Bond Markets

China has long limited foreign investor access to its capital markets. However, the country recently announced it will lift restrictions, a move that further opens its markets to the global investment community. Franklin Templeton Emerging Markets Equity Portfolio Manager Michael Lai, who is based in Hong Kong, explains what this means.

August Ruled by Global Economic Slowdown and Trade Fears
Perspective

August Ruled by Global Economic Slowdown and Trade Fears

Trade fears, social unrest in Hong Kong and Brexit uncertainties weighed on markets in August. Franklin Templeton Emerging Markets Equity expects continued volatility, but an interest-rate cut from the US central bank in September could help stabilize emerging market currencies. The team shares its latest outlook.

Changes to the Emerging Markets Club: China (A Shares), Argentina and Saudi Arabia
Asia

Changes to the Emerging Markets Club: China (A Shares), Argentina and Saudi Arabia

There have been some noteworthy recent changes in the composition of two broad emerging market indexes that have investors taking notice. Domestic Chinese equities now have a greater presence in both the MSCI and FTSE Emerging Markets Indexes—with more shares still to be added. Meanwhile, Argentina and Saudi Arabia also saw status upgrades. Our Dina Ting and Louis Hsu discuss the significance of these changes for these countries, and for investors.

Central Bank Easing in Focus in July
Perspective

Central Bank Easing in Focus in July

"The recent truce in the US-China trade conflict was notable for its brevity: the increasingly antagonistic stance between the United States and China suggests the trade war will likely persist beyond the 2020 US presidential election cycle. We think investors should be prepared for ongoing market volatility." - Franklin Templeton Emerging Markets Equity

Our View as US-China Trade Tensions Deepen
Asia

Our View as US-China Trade Tensions Deepen

“The recent truce in the US-China trade conflict was notable for its brevity: the increasingly antagonistic stance between the United States and China suggests to us the trade war could persist beyond the 2020 US presidential election cycle, and investors should be prepared for ongoing market volatility.” – Sukumar Rajah and Jason Zhu, Franklin Templeton Emerging Markets Equity

Brazil Takes Big Reform Step
Latin America

Brazil Takes Big Reform Step

Pension funding has been an issue in many parts of the world and has certainly been a hot topic in Brazil. President Jair Bolsonaro’s election ignited market optimism on promises to reform pensions to get Brazil’s fiscal house on a firmer footing. The probability of this being delivered has increased considerably after approval of a new pension reform bill in Brazil’s lower Congress. Franklin Templeton Emerging Markets Equity’s Gustavo Stenzel and Marcos Mundim weigh in on what the breakthrough means for the country, and for investors.

A Strong June Pulled Emerging Markets Up in the Second Quarter
Perspective

A Strong June Pulled Emerging Markets Up in the Second Quarter

Trade issues continued to dominate headlines in June, with easing in US-China trade tensions providing a boost to emerging markets overall during the month. But Franklin Templeton Emerging Markets Equity cautions trade-related headwinds could persist. The team shares its latest emerging-market outlook and explains why the small-cap space looks attractive right now.

India’s Budget Moving in the Right Direction
Asia

India’s Budget Moving in the Right Direction

India’s Finance Minister Nirmala Sitharaman recently unveiled the country’s new budget, which aims to give the economy a boost via tax cuts and other measures to stimulate foreign investment. Franklin Templeton Emerging Markets Equity Director of Portfolio Management Sukumar Rajah says the fiscal math looks credible and the targets seem achievable, with the assumption of improving Goods and Services Tax compliance. He says while there are likely to be some winners and losers from an investment standpoint, overall, the government seems to be moving in the right direction to spur economic growth.

MENA Fixed Income: Four Things That Are Top of Mind
MENA Region

MENA Fixed Income: Four Things That Are Top of Mind

What should investors consider when looking at MENA fixed income? Franklin Templeton’s Dino Kronfol shares four things that are at the top of his mind at the moment.

Kuwait’s Emerging Markets Arrival Signals New Era of Investment
MENA Region

Kuwait’s Emerging Markets Arrival Signals New Era of Investment

With Kuwait’s upgrade to MSCI emerging-market status, the combined MENA representation puts this region firmly on the global investment map, according to Bassel Khatoun and Salah Shamma. Read more.

From Imitation to Innovation: Emerging Markets’ Technology Journey
Perspective

From Imitation to Innovation: Emerging Markets’ Technology Journey

Our Chetan Sehgal and Andrew Ness explain why they think emerging markets equity today is a very different asset class from that of 25 years ago. Read more.

China’s Sci-Tech Board: Hope or Hype?
Asia

China’s Sci-Tech Board: Hope or Hype?

China will be launching a Nasdaq-style stock market for technology and research-driven companies to list and raise capital. While it has some detractors, Franklin Templeton Emerging Markets Equity believes this upcoming board is of strategic importance to China. Jason Zhu, director of portfolio management—China Equities, says it could rev up China’s emergence as a research powerhouse and help emerging companies grow into industry champions, but the team will be watching at least two key factors—the quality of companies listed and their valuations.