Risk on/risk off dominated GEM peer group over 2010

The second half of 2010 saw continued strong returns from global emerging markets.

The broad MSCI Emerging Markets (TR) index posted a US dollar return of 30%, outperforming a range of developed markets including the S&P 500 (23% in US dollars), the FTSE All-Share (20% in sterling), DAX 30 (16% in euros) and Japan’s TOPIX (8% in yen). Throughout 2010 emerging markets were characterised by the “risk on/risk off” scenario that affected the majority of bourses around the world. During the first half of 2010, sentiment was dampened over concerns such as Greek and Irish sovereign debt mounted. Renewed military tensions with North Korea, potential interest rate hikes in Asia...