Templeton Global Macro Positive On Outlook For Several Emerging Markets

KUALA LUMPUR, Nov 25 (Bernama) -- Templeton Global Macro, a global fixed income investment powerhouse, is positive on the outlook for several local-currency exposures in specific Emerging Markets (EMs) particularly Mexico, Brazil, Argentina, Colombia, Indonesia and Malaysia. In a statement Thursday, Chief Investment Officer Dr Michael Hasenstab said these markets, which were viewed as undervalued, had showed resilience and managed to weather severe shocks over the last year. "Additionally, we have seen massive depreciation in EM currencies in 2016, yet there have been no solvency issues in countries like Indonesia or Malaysia," Hasenstab said. He opined that 20 years ago it might had been more difficult for many of these countries to weather a protectionist trade shock, a commodity price shock and an exchange rate shock all at the same time. "Yet today these countries are in a much stronger position to handle these types of macro shifts and changes to global trade policies," he added. Hasenstab was also of the opinion that despite an increase in developed market political risks, there were a number of compelling opportunities across specific EMs. "We continue to prefer a number of undervalued opportunities across local-currency EMs over many of the overvaluations and low yields across the developed markets. "It is our hope for 2017 that developed countries experimenting with populism can skip the negative consequences by instead returning to the successes from more orthodox policy-making," he added. -- BERNAMA