Investing.com investing.com 13 Jan, 2021 19:45 am

Patchy vaccine rollout clouds emerging market investment rebound By Reuters

Patchy vaccine rollout clouds emerging market investment rebound By Reuters
Analysis: Patchy vaccine rollout clouds emerging market investment rebound

FILE PHOTO: Vials labelled "COVID-19 Coronavirus Vaccine" are placed on dry ice in this illustration LONDON (Reuters) - A surge in emerging markets linked to the success of COVID-19 vaccines may not fully reflect the challenges of delivering scarce supplies to some of the world's poorest countries, suggesting a bumpy 2021 for investors in the asset class.Yet longer-term global recovery depends in part on vaccine distribution and on this emerging markets are expected to lag developed markets, which have secured more vaccines than needed.Most investors anticipate vaccines should reach emerging markets widely during the second half of the year, a recent Citi survey showed.A weaker dollar is normally supportive of emerging markets and their currencies.

Still, Mexico's credit may be supported by it securing one of the highest doses as a percent of the population in emerging markets.PNG There shouldn't be too much differentiation in sovereign credit performance based on vaccine performance, said Nick Eisinger, principal for fixed income emerging markets at Vanguard.

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