Markets spurn dollars to borrow in local currencies

Emerging markets ended the quarter with positive returns, with the MSCI Emerging Markets index gaining 12.1% (as at 31 March 2006) in dollar terms. Strong performances were seen across the emerging markets universe, where some markets recorded substantial returns while others saw small gains. In Asia, top performers included China, India and Indonesia. However, political turmoil in South Korea and Thailand adversely impacted financial markets. Most Latin American markets recorded double-digit returns during the three-month period as investors remained positive on the region's recovery. T...