Emerging markets have just had their best year. The MSCI Emerging Market Index rose 77% for the year to December 17, which is the most it has risen in one year. The question is, can this rally continue in 2010? And the consensus among economists, analysts and investors is: yes it can.

The JP Morgan Emerging Market Bond Index rose 26% in 2009, also a record, and yields on emerging market sovereign bonds declined more than in any previous year. The average credit default swap spread for emerging market debt fell 550 basis points from March to December.