It has been a tough start to 2022 for emerging markets. The MSCI Emerging Markets index was down sharply in the first quarter, with Russia’s invasion of Ukraine resulting in large falls for one of the bigger constituents of the index.

However, that doesn’t tell the whole story and some emerging markets have done well, better in fact than their developed world counterparts.

The table shows some of the best and worst performers year-to-date and how this compares with the MSCI World index and the MSCI Emerging Markets index.

The real stand-out performer is Brazil’s Bovespa index which was up nearly 15% in the first three months of 2022. As a major commodities producer, Brazil has been a beneficiary of surging prices.

Indian shares also held up, just about staying in positive territory for the quarter despite the impact of rising energy and food prices on the world’s second most populous nation.

Indices in China and Hong Kong have been affected by the renewed spread of Covid and accompanying restrictions. Though notably the Hang Seng has performed better than the likes of the Nasdaq in the US and Germany’s DAX index.

There is little question about which country’s stock market has done worse as the severe sanctions imposed by the West in response to Russia’s invasion of Ukraine have had a huge impact.

Russian stocks recovered a little from their lows, having in the immediate aftermath of the invasion traded at less than half the level at which they started the year.

This outlook is part of a series being sponsored by Templeton Emerging Markets Investment Trust. For more information on the trust, visit here

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