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Emerging Markets Daily - January 18
The Top 5 EM Stories to Start Your Day
A daily round-up of the top 5 Emerging Markets stories to start your day
China Stock Bubble Alarm Bells Rebuffed, More Room to Grow - South China Morning Post
“China’s stocks have climbed out of the depths of the Covid-19 crisis to zip past a 13-year high in the early days of the new year. Not surprisingly, some bears have sounded the alarm bells in the US$11.2 trillion market amid some wobbles… Yet, talks of froth in the domestic A-share market may be premature. JPMorgan Asset Management sees further price upside on the strength of the nation’s economic recovery. While some individual stocks such as Kweichou Moutai and Contemporary Amperex are breaking records, other analysts point to market signals – from valuation to leverage and sentiment barometers – for assurance,” South China Morning Post reports.
Southeast Asia’s Grab Eyes US IPO - Reuters Exclusive
“Southeast Asian ride-hailing and food delivery giant Grab is exploring a listing in the United States this year, encouraged by robust investor appetite for initial public offerings (IPOs), three sources familiar with the matter told Reuters.”
“Grab’s IPO could raise at least $2 billion, one of the sources said, which would likely make it the largest overseas share offering by a Southeast Asian company,” Reuters reports.
Top Samsung Exec Jail Sentence Clouds Business Prospects - Korea Times
“The country's largest conglomerate has hit a major setback after an appellate court handed a prison sentence of two-and-a-half years to Samsung Electronics Vice Chairman Lee Jae-yong in a re-hearing of a major bribery case, Monday.”
”The court ruling puts the tech giant back into a leadership vacuum hampering major investment decisions in new businesses, which many expect will hurt the company's global competitive edge,” Korea Times reports.
Samsung Drags Down KOSPI on Monday, Won Weakens - Reuters
“South Korean shares fell more than 2% on Monday, dragged down by steep losses in heavyweight Samsung Electronics, after its vice chairman was sentenced to two and a half years in prison over a bribery case, while banking stocks led Malaysia lower. Losses in South Korea's KOSPI accelerated inafternoon trade, with the benchmark index sliding as much as 2.7%. The won weakened 0.4%,” Reuters reports.
Rising Dollar Tests EM Currencies - Bloomberg
“A stronger U.S. dollar is proving to be an early test for emerging-market currencies on the eve of Joe Biden’s inauguration.
“The greenback gained over the last two weeks, buoyed by the president-elect’s proposal for a $1.9 trillion stimulus package. Most developing-nation currencies have slumped in that span, and history suggests further pain may be in store,” Bloomberg reports.
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