Morgan Stanley raises 2019 targets for MSCI EM, MSCI Asia Pacific indices

The target for the MSCI EM index has been raised by 8 per cent to 1,130 from 1,050. The index hovered around 1,035 on Monday

Morgan Stanley has raised the 2019 targets for the MSCI Emerging Market (EM) and MSCI Asia Pacific (excluding Japan) indices, boosting prospects for markets like India. 

Aggressive stimulus by China, US Federal Reserve’s decision to put interest rate hike on hold and signs of a thaw in the US-China trade war have prompted the brokerage to take an optimistic view on the EM universe.

“The aggressive China stimulus, a longer Fed pause, positive signs for the US-China trade negotiations and a shares index inclusion lead us to raise our targets,” said Jonathan Garner, chief strategist Asia and EM, Morgan Stanley in a