The five emerging market nations dubbed the "Fragile Five" roiled global financial markets early this year, as their currencies, stocks and bonds tumbled amid bulging current account deficits.
Things soon stabilized in Brazil, India, Indonesia, South Africa and Turkey, and global investors quickly forgot about them.
But now the surge in oil prices has revived concern about the oil importers in that group, which exclude Brazil,
The Wall Street Journal reports. Brent crude prices have jumped more than 9 percent since April 2 to $112.68 a barrel.
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Currencies and financial markets are struggling in some of the Fragile Five. And some experts believe the trouble could worsen if oil prices keep rising or the Federal Reserve indicates it will raise interest rates sooner than expected, according to The Journal.
"Countries with current-account deficits relying on energy imports are most vulnerable," James Kwok, portfolio manager at Amundi Asset Management, tells the paper. "We will monitor closely."
He states that his firm hasn't reduced its positions in the Fragile Five yet, but may do so if oil prices keep climbing.
One expert who is virtually always bullish on emerging markets is Mark Mobius, executive chairman of Templeton Emerging Markets Group. And it's no different now. In particular, he likes Russia.
"The Russian ruble is down against the U.S. dollar, so U.S. dollar investors have a good opportunity,"
Mobius tells CNBC. "And the [stock] market has not done that well. There has been a little bit of a spurt, but there's lots of opportunities there."
Editor’s Note: New Warning - Stocks on Verge of Major Collapse
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