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Coronavirus fear: Morgan Stanley lowers price target for EMs, Asian markets

Morgan Stanley has lowered the year-end price target for the MSCI EM index from 1,150 to 1,100

Samie Modak  |  Mumbai 

Emerging markets

Global brokerage has lowered its price target for (EMs) and the Asian markets, while maintaining its “equal-weight (EW)” stance.

“Oscillation between a recovery-driven euphoria of mid-January towards coronavirus-induced growth fears, and then initial stabilisation suggests our 2020 theme is intact. We remain EW on EM, while cautious about short-term earnings risks and awaiting signs of production and travel normalisation,” the brokerage said in a note.

Coronavirus fear: Morgan Stanley lowers price target for EMs, Asian markets

has lowered the year-end price target for the MSCI EM index from 1,150 to 1,100. “Retain EM as equal-weight (upgraded from underweight in November) as a cyclical trade, although expect W-shaped recovery profile to result from 2019-nCoV Recently lowered earnings growth forecasts and now well-below consensus for all coverage except Japan,” the note added.

First Published: Mon, February 24 2020. 23:09 IST
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