Emerging markets in Asia and Africa still reign supreme: They're at the top of global growth projections over the next two years.

The world is expected to grow 3.2 percent in 2015 and 3.7 percent next year after expanding 3.3 percent in each of the past two years, according to a Bloomberg survey of economists. China, the Philippines, Kenya, India and Indonesia, which together make up about 16 percent of global gross domestic product, are all forecast to grow more than 5 percent in 2015.

By comparison, the U.S. and U.K., which combined account for about a quarter of global growth, are expected to grow 3.1 percent and 2.6 percent this year, respectively. The euro area probably will expand just 1.2 percent as European Central Bank President Mario Draghi deals with a fragile Greece and embarks on a bond-purchase program to stimulate the region's growth.

David Fuller's view

I would not be surprised if some of these growth projections are a little too conservative, given that the price of crude oil is low.  Moreover, accelerating technological developments may not show up in national GDP figures just yet, but they are more likely to have a positive effect on the corporate earnings of larger companies. 

China’s Shanghai A-Shares Index (p/e 15.54 & yield 2.04%) is in a probably medium-term consolidation of initial sharp gains in a new bull market give the country’s monetary stimulus.  Interestingly, Hong Kong’s Hang Seng China Enterprises Index (p/e 8.50 & yield 3.56% is much cheaper and the rounding base formation could easily support a test of 14000 this year.

The Philippines Index (p/e 22.33 & yield 1.87%) is temporarily overextended but remains in a clear overall upward trend.  It is also more speculative at these valuations but a close beneath 7000 would be required to indicate a significant upside failure.

Kenya (p/e 17.22 & yield 3.77) is fairly valued and in the process of breaking out of an extensive consolidation phase which should support a retest of the 2007 peak over the medium term.

India’s National (Nifty 50) Index (p/e 20.10 & yield 1.36) is somewhat expensive but with very good growth potential for corporate earnings.  It remains in form and a break in the current sequence of higher reaction lows would be required to check uptrend consistency. 

Indonesia’s JCI Index (p/e 24.09 & yield 1.81%) has resumed its overall upward trend following a very lengthy consolidation.  A move below 4900 would be required to indicate a significant upside failure.

Nigeria’s NGSE Index (p/e 10.17 & yield 5.07%) seems cheap although I question the GDP estimate, not to mention sustainability of corporate profits and dividends given its dependence on crude oil exports.  It also has political problems and is obviously out of favour.  It may be a long-term recovery candidate but only for investors with lots of patience.