Any upbeat surprise in Friday’s
closely-watched US non-farm payrolls report could bring some relief to
battered emerging markets, some analysts say. That’s not what you might
expect given that emerging markets from Turkey to Brazil and India have
been hurt as the US Federal Reserve starts to unwind its monetary
stimulus in light of a brighter growth outlook.
So any upside surprise today would be positive for emerging markets
since they would find some consolation in that there would be some
justification in taper if the US is growing,” he added. Economists
polled by me expect the US economy generated 185,000 new jobs in January
compared with 74,000 in December. The unemployment rate is seen steady
at 6.7 percent.
Last year, they were the two emerging markets in Asia not to touch
with a barge pole. Yet for India and Indonesia, a few months appears to
have made a big difference. The two countries have come off relatively
unscathed in the latest bout of volatility to hit emerging markets amid a
scaling back of the US Federal Reserve’s monetary stimulus and worries
about the global growth outlook following weak data from the U.S. and
China.
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