While the currency wars and macro flows are driving the majority of the emerging markets headlines, every trade is still a matter of one or more individual stocks. Here are a few we are watching: BRAZIL:EmbraerERJ now views China as an outright rival in the aviation market, and not just a cheap place to produce planes. Going forward, this is probably a negative for ERJ -- one of the most technologically advanced and "global" of the emerging markets manufacturers -- and demonstrates that competition among emerging companies can be especially fierce.
INDIA: Mahanagar Nigam MTE has come a long way from its days as the Indian phone monopoly. As the only Indian phone company that trades in ADR form, it still has a bit of a monopoly in U.S. investors' hearts -- but revenue is declining in this otherwise ebullient telecom market, so VodafoneVOD may be a better bet.
CHINA: Yanzhou Coal YZC benefits from both a weak yuan and strong commodity markets -- not to mention a strong Australian dollar, since it does a lot of its digging in that country. The stock may still have plenty of upside ahead; in fact, Deutsche Bank is betting that YZC offers the best leverage of all when it comes to rising coal prices.
ETFs in the SpotlightESR Eastern Europe has a strong emerging consumer focus while Russia adds commodity heft. In theory, this ETF should be soaring at least as much as the Polish stock market (up 10% year to date) or its Moscow counterpart (up nearly 9%), so ESR's 6.77% YTD gain may disappoint some investors. Once again, index construction makes all the difference.
CCX: Commodity-linked currencies like the rand, the real and the ruble are surging this week as the dollar's weakness feeds into stronger commodity prices, setting up a vicious cycle. This brand-new currency ETF gives traders exposure to all of them at once. The question is, as with other funds that purport to reflect forex markets, how accurately its results line up to the underlying exchange rates.