Overall, it has been a mixed year for emerging markets - with the heavy weighting for a lacklustre Chinese market seeing the MSCI Emerging Markets index creeping just 1.8% higher as we write against a 17.4% advance for the MSCI World developed markets index (both in dollar terms).

However, within that overall picture some markets have performed extremely well. Egypt’s stock market hit record highs in 2023. Though like fellow strong performer Turkey, much of this can be attributed to investors looking to hedge themselves against devalued currencies and rising inflation.

Turkey’s near neighbour Greece has done well as foreign investors have returned to a market they shunned in the wake of its default more than a decade ago. This has been supported by an election result which delivered political stability and fiscal and bureaucratic reforms.

Eastern Europe has been a bright spot, while among larger markets India and South Korea have performed strongly. The National Exchange of India recently overtaking Hong Kong to become the world’s seventh largest stock market. It has been a beneficiary of increased market liquidity and greater participation among domestic investors.

China is the standout disappointment as its recovery from Covid has flattered to deceive and problems in its property sector have led to market jitters. The performance of markets in the Middle East has been affected by volatile energy prices and conflict in the region.

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