The resurgence of emerging markets this year has reignited a belief in decoupling – the theory that these economies can continue to grow strongly in spite of a sharp slowdown in the developed world.
Emerging market equities have greatly outperformed their developed world peers since the start of the year, accelerating since risk appetite began to improve in March.
The FTSE emerging markets index has risen 41.1 per cent since the start of the year and 60.8 per cent since the beginning of March. This compares with a rise for the FTSE All World developed markets index of 7.2 per cent since the start of the year and 31.4 per cent since the start of March.