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 concentra

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.