-4 C°
Traffic jam:   3

Morgan Stanley says emerging market stocks could soon hit bottom

5 October 2022
2 min.
Morgan Stanley says emerging market stocks could soon hit bottom

Morgan Stanley suggests

Emerging market stock indices could soon reach the low point in the current bearish cycle, analysts at Morgan Stanley (NYSE:MS) believe.

As a consequence, economists of the bank, including strategist Jonathan Garner, changed the recommendation for securities of developing economies and Asian countries excluding Japan to "above market" from "at market level", writes Bloomberg agency.

The revaluation by Jonathan Garner, who correctly predicted a deepening rout in emerging markets and China earlier this year, comes just as emerging market stocks have experienced a record drop from their recent peak amid a rising dollar and strict restrictions imposed by China over Covid.

The MSCI EM index has fallen 26% since the beginning of the year amid a stronger dollar and tough measures to contain the coronavirus pandemic in China. Morgan Stanley expects the indicator to rise 12% by June next year.

"A lot of firewood has already been chipped and it's time to plant saplings for the next cycle," the bank's analysts wrote.

The experts also improved recommendations for South Korean and Taiwanese stocks, as well as for semiconductor and technology equipment stocks.

In a separate note, Morgan Stanley analysts upgraded recommendations for Korean microchip supplier SK Hynix Inc. (KS: 000660), Apple (NASDAQ: AAPL) parts supplier LG Display Co. (SPB: LPL) and Taiwan-based AUO Corp. According to them, shares of Taiwan Semiconductor Manufacturing Co. are among the most promising targets for investment.

At the same time, the experts downgraded recommendations for outperforming markets this year, moving shares of companies in Indonesia and Singapore to the "market-level" category.

Morgan Stanley said it expects the benchmark MSCI EM index, which has fallen 26% this year, to rise about 12% through June.

Persons1 and Companies3 in the news

Strategist at Morgan Stanley
1 place
1 place
Morgan Stanley
2 place
Bloomberg L.P.
3 place
Source foto:


Rating companies
152 Mention
Dow Jones
119 Mention
38 Mention
38 Mention
34 Mention
Bloomberg L.P.
29 Mention
JPMorgan Chase
23 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year