Emerging markets gain momentum as China, India, Russia improve

HONG KONG - The HSBC Emerging Markets Index has indicated stronger output growth in June, posting a reading of  52.3, up from 50.6 in May and the sharpest rate of expansion since March 2013. However, it remains below its long-run average of 53.8.

HSBC says the pick-up in output growth was reflected in both manufacturing and services, most notably the latter where activity growth hit a 15-month high. Three of the four largest emerging markets, China, India and Russia, contributed to the faster overall rise in output in June.

China posted the sharpest increase in output for 15 months, while India saw the steepest expansion since February 2013. Russian private sector output stabilised, having fallen at the strongest rate in five years in May. Brazil, however, registered a further flat trend in activity.

Stronger output growth reflected the fastest increase in new orders since March 2013. Meanwhile, the level of outstanding business was unchanged, following a five-month sequence of decline. Inflationary pressures remained subdued. www.hsbc.com (ATI).