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JPMorgan backs emerging market stocks after poor run

Published 09/15/2021, 12:01 PM
Updated 09/15/2021, 12:07 PM
© Reuters. FILE PHOTO: A JPMorgan logo is seen in New York City, U.S., January 10, 2017. REUTERS/Stephanie Keith/File Photo
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LONDON (Reuters) - Investment bank JPMorgan (NYSE:JPM) 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.

© Reuters. FILE PHOTO: A JPMorgan logo is seen in New York City, U.S., January 10, 2017. REUTERS/Stephanie Keith/File Photo

"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.

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