Emerging markets bounced 5 percent on Tuesday, adding to gains of over 7 percent made in the previous session, as investors welcomed global plans for bank bail-outs.
"The credit and money markets are finally responding favorably to government intervention," said Akber Khan, director of LatAm equity focus at Deutsche Bank.
"The next phase for emerging markets could see the IMF becoming a far more active lender -- with US$200 billion in capital and a further US$50 billion in credit lines, the IMF stands in a strong position from which to provide precautionary funding to a range of countries."
As emerging markets begin to regain their footing the action leaves some investors questioning which stocks remain oversold. Fast Money’s emerging markets specialist Tim Seymour has a few ideas..
He likes Petrobras and Vale , two of the biggest companies in emerging. “Vale is only trading at 3.5 times next year's earnings,” Tim says. “And they have huge cash flow.”
Also he recommends Petro China, Russia's Gazprom, and Freeport McMoRan , which is headquartered right here in the good ol' USA.
All of these companies have been taken down in the last 6 months because they’re liquidity vehicles for a number of global players. "Now valuations are compelling,” Tim concludes.
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CNBC.com with wires