BlackRock sees emerging stocks almost recouping last year's loss

Signs of improving liquidity include falling rate differentials between the US and other markets

Gordon Fraser of BlackRock, who made the call to load up on Brazilian companies just before an election-spurred rally late last year, predicts emerging-market (EM) equities will recover most of their 2018 losses this year.

In the face of a slowing global growth, the Federal Reserve is unlikely to raise rates this year, causing the dollar to weaken and improving the flows into EMs, said Fraser, a developing-market equities fund manager. 

He is betting on the companies gaining from a weak US currency, and those tied to China advancing on prospects of an improvement in the economy.

“Markets should recoup most, if not