Emerging Markets Steady Amid Economic Data Focus

Stocks and currencies in emerging markets remained mostly steady, with a notable index set to gain for the sixth consecutive week. Markets in China, India, and South Africa drew attention due to economic data and budget votes. The performance varied across regions, including slight changes in currencies and stocks.

Stocks and currencies across emerging markets stayed broadly flat on Friday, although a key index tracking equities was poised to log gains for the sixth week out of five. Attention centered on economic data from China and India, alongside South Africa's budget vote.

MSCI's index tracking stocks in emerging markets slipped 0.1%, maintaining levels seen more than two years ago. The index was up 1.6% for the week, contrasting with the U.S. benchmark S&P 500's modest 0.3% rise week-to-date.

Markets in China, Hong Kong, Taiwan, South Africa, Turkey, and India were all primed to end the week on a higher note. Wim-Hein Pals, head of emerging markets equity at Robeco, highlighted the outperformance of emerging markets compared to developed ones, driven by extreme undervaluations and pockets of earnings strength.