Emerging-market rebound anticipated

One of Wall Street’s veteran emerging-market investors said he expected stocks to recover from their steepest slide since June, helped by the countries’ rapid economic growth rates.

“We believe in patience,” Mark Mobius, a managing director at Templeton Asset Management, told investors Tuesday during a presentation in Sao Paulo. “We look at volatility of the last few days and we don’t get excited.”

Chinese stocks, which led last week’s global sell-off, were overvalued and due for a decline, he said.

But the longer-term view is that investors are recognizing the strength of emerging-market economies, Mobius said.

He said the influence of the U.S. economy on emerging markets isn’t as strong as it once was, and China is assuming greater importance.

He also said concerns that the U.S. economy might slow sharply this year were overblown. “The U.S. is supposed to have been in recession for the last four years, and we’re still waiting.”