How shares in Russa, Brazil, China and India fared in 2019 and what’s in focus for 2020
Thursday 19 Dec 2019 Author: Tom Sieber

How have the main emerging market stock indices performed in 2019? We now take a look at what’s behind the performance.


RTS (Russia)  +37.1%

What is behind the performance?

Among the key factors were Russian companies increasing dividends, as well as the country being less indebted than other emerging markets and the central bank helping to keep the economy on track with targeted rate cuts.

What could move markets in 2020?

The economy and stock market continue to be dominated by energy companies so whether cuts agreed with oil producers’ cartel OPEC, and deepened in December 2019, are extended beyond March 2020 could have an influence.


Bovespa (Brazil)  +25.9%

What is behind the performance?

The election of business-friendly president Jair Bolsonaro in late 2018 provided a catalyst for Brazilian shares. While GDP growth slowed in 2019, fiscal stimulus and interest rate cuts to get the economy moving supported market momentum.

What could move markets in 2020? 

Bolsonaro’s ability to deliver further market reforms and increased infrastructure spending will be watched. Municipal elections in October 2020 could help gauge political opposition to his administration’s more controversial policies.


SSE Composite (China)  +19.5%

What is behind the performance?

Despite the trade war with the US, China’s shares have bounced back after a difficult time in 2018 as sentiment among retail investors in the country has improved. Also helping matters was MSCI raising the share of Chinese shares in emerging markets indices and domestic consumption has increased.

What could move markets in 2020?

Continuing developments in trade negotiations with Washington, plus the policies of the Chinese central bank.


Nifty 50 (India)  +9.6%

What is behind the performance?

After a difficult start to the year, linked to weaker domestic demand and a credit crunch, the introduction of tax cuts in September 2019 helped give Indian shares a much-needed lift.

What could move markets in 2020?

This depends on the extent to which domestic consumption recovers and whether the Indian government introduces further measures to boost growth.

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