Asian, EMs entering the late stages of a bear market: Morgan Stanley

Over the next 12 months, Morgan Stanley forecasts range-bound markets for equities, credit, yields, and the US dollar

Asian and emerging markets are entering the late stages of a bear market, said analysts at Morgan Stanley in their mid-year equity market outlook note on Wednesday. The near-term risks, the research and broking house said, are known, but potent.

Typically, a market is said to be in a bear phase when the frontline stock indices drop 20 per cent or more from their recent high. 

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“Asia and EM equities are entering the late stages of a bear market that has traversed valuation, regulation,