Valuations attractive: JP Morgan paints rosy outlook for emerging markets

Both the US and China want a trade deal, and that would bring relief to the assets, including those in China

With the chances growing that the US and China will resolve their trade dispute and the dollar likely to weaken as the Federal Reserve stays on hold, the outlook for emerging-markets stocks is looking rosier.

That’s the conclusion that JPMorgan Asset Management reached in a report published this month, adding that emerging markets are still in mid-cycle, despite a slowing economic momentum globally. Another point in their favor: valuations have become “quite attractive” after last year’s rout.

“We anticipate that China will do everything it can to resolve trade tensions with the US, ” wrote Richard Titherington, JPMorgan Asset’s chief