Value hunters move from developed to emerging markets

[SINGAPORE] Markets never trade according to plan; this year was no exception. The US and Japan, two of the world's biggest markets tipped to continue doing well after unexpectedly spectacular gains last year, are both in negative territory in 2014.

Tech stock valuations are coming back to earth in the US, while investors in Japan have been disappointed by the lack of further stimulus from the country's central bank.

Meanwhile, the unloved markets of yesteryear, such as Indonesia, India, and Brazil, are making a comeback. Even China, the teetering giant investors bailed out of last month, has rallied in recent weeks.

Observers explain the anomaly by saying that some emerging markets have looked cheap by comparison to developed ones in terms…