Don't Be Fooled by Emerging-Market Comeback, Japan Fund Says

  • Asset Management One’s Matsumoto favors Indonesia, Brazil
  • EM doesn’t look as bullish as 2017, but not bearish like 2018

Commuters cross a road in the central business district of Beijing, on Jan. 21.

Photographer: Greg Baker/AFP via Getty Images 

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Don’t be fooled into believing that the emerging-market rally fueled by a “patient” Federal Reserve will last throughout 2019.

Satoru Matsumoto, a fund manager at Japan’s Asset Management One Co., which oversees the equivalent of about $490 billion, said the economic slowdown in China followed by the U.S. amid trade tensions will weigh on assets.