Emerging market stocks are poised for a second month of gains across the board despite recent uncertainty in Turkey and other markets.
Stocks slipped slightly on the news that the Bank of Japan would only modestly purchase ETFs to maintain interest rates rather than a more robust stimulus package. A decline in oil prices also weighed on stocks.
However, the MSCI Emerging Market Index is up 4 per cent in July.
Manik Narain, a UBS analyst, said, "EM fixed income benchmarks are giving double digit returns so there is a lot of appetite out there to chase those returns higher still. Post-BOJ there is a small pullback but it's concentrated on oil-centred emerging markets and the market seems confident the low-yield environment and stabilising emerging growth is consistent with EM assets holding up."
Read more at Reuters.