It’s been a good year so far to be an emerging market equities investor, to say the least. The MSCI Emerging Markets Index surged 11 per cent last month – its strongest January in 11 years, rebounding from a 21 per cent tumble last year – and is currently at its highest level since August.

And it seems that fund managers are counting on more EM joy still. According to a monthly survey by Bank of America Merrill Lynch – considered a barometer of sentiment in financial markets – there has been a “stunning rise in asset allocation to EMs” in February. Even after last month’s stellar performance, the jump towards EMs is the second biggest in the past 12 years. Continue reading »

The return of a beleaguered opposition in Bahrain; marrying America’s innovative strength with China’s manufacturing prowess; why India needs foreign investment, not aid; the special relationship between Singapore and the US; and how ethnic solidarity can be a force for peace and prosperity in the Balkans. Continue reading »

India’s headline inflation fell to 6.55 per cent in January, down from 7.47 per cent in December. The figure has been closely watched in the price-sensitive country – inflation hovered near double digits most of last year, causing the Reserve Bank of India to hike key interest rates 13 times since March 2010.

While the figure is a great improvement from last year, it may not be enough to cause the RBI to cut interest rates any sooner than its April policy review, which is widely expected.