Gap between EMs and developed world becoming more noticeable

Emerging markets equities experienced an extraordinary recovery in the second quarter of 2009.

Although stocks in the developing world experienced a respite in June, they rose very strongly in both April and May as credit and global equity markets showed signs of improvement. Aided by an extremely positive reaction following the re-election of the Congress Party, India was the best-performing major Asian market. Indonesian equities also performed well, helped by a relatively strong economy. Thai shares also recovered impressively as political tensions eased. Chinese stocks effectively performed in line with the global emerging markets, helped by strong investor flows in June. ...