BlackRock now recommends overweighting emerging-market equities, saying
AI-driven demand for scarce inputs and stronger corporate profitability should
help EM outperform, Wei Li and other strategists wrote in a Monday note. The
firm singled out South Korea and Taiwan as central to semiconductor and memory
supply chains and flagged Latin America as providing bulk commodities and
infrastructure exposure for AI buildout. The change reverses a June downgrade to
neutral—then justified by AI concentration and leverage risks, especially in
Korea—with BlackRock saying Korea’s de-leveraging after July’s large sell-off
supports the return to overweight.
