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FXstreet.com (San Francisco) - From Clyde Wardle, Paul Mackel & Murat Toprak at HSBC Global Research: "Over the past few years, 'fundamentals' in the emerging market (EM) space have taken a back seat to the global 'risk-on/risk-off' phenomenon."

HSBC continues: "The reduction in tail risks has contributed to this shift, we believe, with broader issues such as China's growth and solvency of peripheral Europe now less of a concern."

HSBC adds: "As such, countries with the best economic attributes tend to be favored, while those with domestic drawbacks are avoided."

HSBS concludes: "So the long and short of it is, you need to find places to be long and other locations to be short, because it's not all going one way or the other anymore."

HSBC also notes that it expects MXN strength and BRL weakness to continue, and favors PHP against the SGD.

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