UBS Expects China Policy Easing to Boost Undervalued EM Equities
- Sees easing political risk in major EMs also supporting demand
- MSCI EM index close to erasing all gains accrued this year
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Beaten-down emerging-market stocks will get a boost from an expected policy easing by Chinese authorities and as political risk in the larger economies in the region improves, according to UBS Group AG.
“There is a lot of gloom and doom reflected in valuations of emerging-market equities,” Alejo Czerwonko, chief investment officer for emerging markets in the Americas said in a Bloomberg Television interview. He expects possible policy easing in China and the recent decline in political risk in Mexico, Brazil, Chile and Colombia to support the demand for emerging market stocks.