Emerging markets remained volatile in October. Continued pledges of aid by authorities to contain the credit crisis, including the approval of a revised US bailout package and IMF-led initiatives for emerging economies, pared heavy losses, but failed to erase global recession fears. To support their weakened currencies, Russia and Korea dipped into their reserves, Indonesia introduced administrative measures, while Hungary raised interest rates.Meanwhile, the US entered into currency swap agreements with Brazil, Mexico and Korea to ease US dollar shortage. Economic data disappointed. China's third-quarter GDP growth slowed. October consumer confidence weakened in Brazil and the Czech Republic. To spur growth, the Fed cut interest rates twice, each time spurring similar moves in other central banks, including China's. New Thai prime minister Somchai Wongsawat was charged for violating the constitution.Malaysia's deputy premier Najib Razak won his party's presidency. We topped up Astra International, Hang Lung Group and other holdings on price weakness. We pared Truworths and Public Bank following their strong performances, and ICICI Bank in light of the weakening operating environment.
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