Oil price spikes and war struggles fail to stop the rally; emerging markets are expected to withstand the risk of Fed rate hikes.

- Since the start of this year, emerging markets have withstood war, $100-a-barrel oil and rising US Treasury yields. Despite market concerns that the Federal Reserve may raise interest rates, investors still believe that the rally in emerging markets is likely to continue. Oil prices jumped again, and combined with Friday's stronger-than-expected US inflation data, further strengthening the case for the Fed to raise rates this week, emerging market assets were hit. However, many fund managers remain confident. They believe that policy credibility in many emerging markets has improved, corporate earnings are strong, and more importantly, the risk of a sharp rebound in the dollar is not high. Historically, a stronger dollar has been a major source of pressure for emerging markets. "I don't see any alarms flashing for emerging markets," said Benoit Anne, senior managing director at MFS Investment Management.