The rebounding oil prices has bolstered emerging economies that rely on energy exports. For instance, the iShares MSCI UAE Capped ETF (NasdaqGM: UAE) gained 5.5% and Market Vectors Russia ETF (NYSEArca: RSX) rose 3.1% on Monday.
Moreover, the strengthening developing country currencies are also adding to the rally in emerging market equities. For instance, the iShares MSCI Turkey ETF (NYSEArca: TUR) increased 3.2% after Turkey retained its investment-grade status.
“Emerging markets are trying to bottom,” Hertta Alava, head of emerging markets at FIM Asset Management Ltd, told Bloomberg. “Considering how bearish the mood has been lately, a relatively weak scenario might be priced in already. So, there could be room for positive surprises.”
Other emerging markets that led the bounce on Monday include iShares Indonesia Investable Market Index Fund ETF (NYSEarca: EIDO) up 3.3%, iShares MSCI South Africa ETF (NYSEArca: EZA) up 3.0% and Global X FTSE Greece 20 ETF (NYSEArca: GREK) up 2.5%.
Max Chen contributed to this article.
CORRECTION: updated Mobius’ and Lirong’s title.