Russia and Brazil could experience swift economic recoveries with the help of government policy changes, though the threat of more sanctions against Moscow was still present, veteran fund manager Mark Mobius said on Thursday.

Russia and Brazil could experience swift economic recoveries with the help of government policy changes, though the threat of more sanctions against Moscow was still present, veteran fund manager Mark Mobius said on Thursday.

Gas and oil account for two thirds of Russia's exports and the country has been hit hard by a 40 percent drop in oil prices as well as sanctions imposed by western powers over the Ukraine crisis.

In Brazil the narrow re-election of President Dilma Rousseff in October rattled markets doubting her ability to curb the budget deficit and control inflation.

"We believe both Russia and Brazil have the resources to bounce back strongly should more appropriate policies be adopted," wrote Mobius in his Templeton Emerging Markets Investment Trust 2015 outlook.

"With Russia in particular, much risk already has been discounted in exceptionally low equity valuations as of December-end, though the Russian government's unwillingness to soften its stance toward Ukraine could elicit more sanctions that result in a negative environment for investors."

Mobius manages more than $3 billion in his flagship emerging markets equity fund, which counts Brazilian banks Itau Unibanco and Banco Bradesco among its top five holdings.

Mobius predicted ongoing reforms in many countries were set to boost economic growth across global emerging markets at comfortably higher rates than that of their developed peers.

Investors also failed to recognise the favourable trends in emerging markets equity valuations, which were well below those of their developed market peers, he added.

"Even after recent rallies in some emerging markets, they continued to appear relatively attractive to us in relation to history, particularly if very low bond yields and interest rates for savers are taken into account."