Bloomberg’s recent analysis of emerging markets has ranked Malaysia right on top the list.
According to the Bloomberg analysis, Malaysia remains on top of the list because of its current-account surplus, relatively stable economic growth outlook, and valuations. The data also showed inflation came in at 0.6 percent in October from a year earlier, compared with its 10-year government bond yield of about 4.17 percent.
Aside from Malaysia, four other Asian countries made the list. China sits strong at third place, Philippines close behind at 4th place, followed by Thailand in 6th place. Korea finish off in 10th place.
China and Thailand are drawing support from current-account surpluses, relatively strong growth and benign inflation. The Philippines’ current-account deficit and high inflation rates are partly offset by growth of more than 6 percent.
Here’s the top 10 list:
“A closer attention is now paid to economic growth outlooks of each emerging economy amid successive rate hikes,” said Tsutomu Soma, general manager of the investment trust and fixed-income department at SBI Securities Co. in Tokyo.
“Investors are also deciphering how each country is impacted by the U.S.-China trade frictions. They will continue to be more selective with their investments given such circumstances.”