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Brexit's impact on EM: Should we worry?

Asia and especially Latin America look likely to be insulated, unless Brexit sparks a more global crisis.

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TRADE FACTOR: The UK is not hugely important for EM exports or imports. A scenario in which only UK growth and demand are hit would not be too problematic for EM. However, should Brexit deal a larger blow to broader European growth, the consequences for EM become more severe.

IN any discussion of the economic and market outlook, even for emerging markets (EM), it is difficult to escape the pervasive influence of "Brexit".

The market reaction to the referendum vote suggested a degree of exposure for EM, as the MSCI EM index sold off along with global equity