Morgan Stanley: Emerging Markets Stocks Including Korea May Have Peaked in January

[Asia Economy Reporter Ki-min Lee] The American investment bank (IB) Morgan Stanley analyzed that emerging market stocks, including Korea, may have already peaked in January and are showing a downward trend.

According to Bloomberg on the 3rd, Morgan Stanley recently presented eight reasons in an investment report why the Morgan Stanley Capital International (MSCI) Emerging Markets Index (EMI) is unlikely to rise further.

For example, they cited the correction in copper prices, which have a strong correlation with the emerging markets index, and conversely, the US dollar has stopped declining and is showing stability.

In particular, they pointed out that major countries' stock markets, including Korea, often lead emerging markets, noting the trend where the Korean stock market hit a peak in January and then turned downward. China's monetary policy and fund flow were also cited as reasons for the negative outlook.

The MSCI Emerging Markets Index rose 10% last month due to expanded vaccine supply and US economic stimulus measures, reaching an all-time high, but currently remains below Morgan Stanley's year-end target of 1330.

Jonathan Garner, Morgan Stanley's Asia Emerging Markets strategist, said, "The key to future investment performance lies in which countries, sectors, and stocks to choose," naming India as a country with a favorable outlook.

This content was produced with the assistance of AI translation services.