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Bruised Emerging Markets Are Battle-Ready for a US Recession

  • China’s rebound, cheap valuations are biggest attractions
  • Argentine assets in focus after economy minister resigns
Shoppers buy produce at an outdoor market in the Tijuca neighborhood of Rio de Janeiro, Brazil.

Shoppers buy produce at an outdoor market in the Tijuca neighborhood of Rio de Janeiro, Brazil.

Photographer: Maria Magdalena Arrellaga/Bloomberg
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Emerging markets are well positioned to stare down a US recession and may even be able to lure investors their way.

That’s the message from money managers including JPMorgan Chase & Co. and Deutsche Bank AG even as fears of a contraction in the world’s largest economy spark a dash into Treasuries and other haven assets. Beyond the short-term turbulence, they say, developing nations will be cushioned by cheap valuations, higher yields, faster growth and above all, a resurgent China.