Emerging markets have returned the strongest year-to-date performance, driven by Asia, in the wake of a globally healthy economy.
We remain positive on Asia, due to the uptick in growth in Indonesia, Thailand and the Philippines, and the strength of the South Korean economy. Taiwan was also underpinned by strong performances among tech stocks.
Despite sporadic weakness in Russia, emerging European markets, the Middle East and Africa provided some positive surprises, with strong performances from Greece and Poland, which has posted the best year-to-date returns among emerging markets. South Africa and Turkey both staged a strong rally after their recent political setbacks. Latin American markets underperformed across the board, primarily due to weaker commodities prices.