Assets in commodity-rich emerging economies well-equipped to weather inflation | Asset Owners

Asia’s emerging economies are likely to weather the inflation and geopolitical woes plaguing developed markets today, with assets such as long-term bonds and commodity and energy shares presenting good opportunities to institutional investors.

However, rate hikes from the US Federal Reserve could have a profound effect on emerging markets, while China could have a major role in Asian markets’ post-pandemic recovery.

While the US battles record-high 7.9% inflation at home and Europe is preoccupied with an energy crisis and geopolitical uncertainties, emerging economies rich in natural resources and commodities will likely survive and could even thrive.

“Places like Indonesia and Malaysia have all the right materials and minerals. Their economic growth will be unimpacted (by high commodity prices),” said Mark Nash, head of fixed income at Jupiter Asset Management, in an…