There is a lot of talk among analysts and market studies companies about the strong activity expected in the stock markets in emerging countries, and the most recent report of Morgan Stanley yesterday predicted that the global index of emerging markets will rise by up to 8 % This year.
The report stated that emerging market activity is likely to be driven by additional incentives from Beijing and the recovery of Chinese stocks, which currently account for 32.12% of the index.
Chinese indices this year - especially the more-than-traded SA 300 indexes on the Chinese mainland and the Hang Seng index in Hong Kong - recorded outperforming the MSCI for the first time.
>Morgan Stanley analysts said they have become more optimistic about the performance of Chinese stocks during the year as those stocks led the gains in the recovery witnessed in emerging market shares in 2019, according to Al Khaleej newspaper.
These expectations were reinforced by the increased chances of resolving the trade dispute between Beijing and Washington and the possibility of concluding an agreement soon.
The bank attributed the recovery to the effectiveness of recent stimulus measures taken by China that exceeded market expectations, pointing to the record numbers of bank loans and social financing in January, which is a comprehensive measure of the volume of credit operations And liquidity in the economy.
The bank expected that these measures will reflect positively on the economies of Asia, especially through the high rates of activity of the tourism and industrial sectors and the demand for natural resources and services. The bank report cited a 10% increase in copper price since the beginning of the year.
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