JPMorgan backs emerging market stocks after poor run
LONDON (Reuters) - Investment bank JPMorgan has urged investors to stock up on emerging economy equities whenever they dip and said that Japan's change of prime minister should boost the yen and Nikkei if history is anything to go by.
Signs the Delta wave of the COVID-19 virus were now receding meant it was staying "pro-risk", the banks' analysts said in a global asset allocation report on Wednesday.
"We increase our overweights (buy recommendations) in EM and Japan this month given their recent underperformance and an anticipated boost in Japan from a political regime change".
They also see the economic recovery continuing on its robust path and returning global GDP to its pre-crisis trajectory next year. "We stay bullish on the overall equity market direction," JPMorgan said.
(Reporting by Marc Jones; Editing by Tom Arnold)
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