Templeton's Mobius sees bargains in turmoil

The financial storm of the last week has smacked valuations down to attractive levels, particularly in Brazil, Thailand and Turkey, said Mark Mobius, executive chairman of Templeton Asset Management.

In response to email questions on Wednesday, Mobius said markets are closer to the end of the financial crisis after a bankruptcy filing by Lehman Brothers (LEH.P: Quote, Profile, Research), massive industry consolidation and the bail-out of American International Group (AIG.N: Quote, Profile, Research).

"The resolution of the uncertainty revolving around Lehman, Merrill Lynch and AIG is positive and could constitute the beginning of the end of the market turmoil that has afflicted financial markets since mid-2007," said Mobius, who helps to oversee $28 billion in emerging market assets.

"We believe the events of this past week have resulted in markets falling to valuations that present an investment opportunity."

He said he continues to find value in Brazil, Thailand and Turkey, where he has been bullish since at least April. He also said bank stocks in emerging markets have not been hit as hard as in developed markets.

Emerging markets have been hard hit in the last two months, particularly after oil prices peaked and then fell nearly $54 a barrel, as investors slashed their exposure to risky markets.

The MSCI emerging markets stocks index .MSCIEF has dropped 27.6 percent since July, underperforming the all-country index .MIWD00000PUS, which has fallen 13.9 percent.

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