Overall emerging markets rose 42 per cent in 2007 as against a gain of 9.4 per cent for the world's developed markets. ''The current and expected sales growth in the emerging equity markets fueled their returns in 2007,'' S&P's senior index analyst Howard Silverblatt said. ''As a result, we saw an outflow of cash from the developed markets into emerging.'' In December when 16 of the 26 emerging market countries gained ground, India performed best with a return of 9.09 per cent, followed by Nigeria 8.75 per cent and Egypt 8.07 per cent, whereas China posted a loss of minus 3.82 per cent during the month, S&P's said.
December saw 19 of the 26 developed world equity markets landing in negative territory but losses were mostly modest except in Iceland where it declined by minus 11.58 per cent, its second consecutive month of double digit-decline, which was minus 15.48 per cent in November.
Canada, however, rebounded from its double-digit November loss of minus 11.17 per cent to post a 2.69 per cent gain in December. Luxembourg was the best developed market performer last month, gaining 3.83 per cent.