Will oil drop, China crackdown kill emerging market rally?

THERE is an increasing chorus of bears which regard the oil price drop and China crackdown on leverage – which spurred the rout in industrial metals and iron ore – to be potential killers of the emerging market rally.

But some are not convinced. “(Despite the drop), oil price is still near the acceptable range so long as it does not hover too far from US$50 per barrel. It may not affect the fundamentals of an economy too drastically and may just be a sentiment issue.