JPMorgan maintains overweight stance on emerging market equities, expecting a significant rally in the second half of 2026.
The rally is driven by cheap AI and semiconductor valuations, projected central‑bank policy easing, and a softening U.S. dollar premium of 10‑15%.
JPMorgan notes China’s “green shoots” and upcoming US‑China summit as geopolitical tailwinds, while institutional positioning in EM remains low.
Memory‑chip supply additions are not expected until H2 2027, so the bank advises against bearish sentiment on the sector now.