BNY: EM Equity Positioning Skewed to Korea, Taiwan; Rest at Historic Lows
BNY's Geoff Yu notes emerging market equity positioning is heavily concentrated in South Korea and Taiwan, with the rest of EM seeing historically low allocations amid China weakness and poor data.
Geoff Yu of BNY highlights that current Emerging Markets (EM) equity positioning is heavily skewed toward South Korea and Taiwan, while the rest of EM has historically low allocations.
China's economic weakness and broader poor EM data have already driven valuations to price in disinflation and weak growth prospects. The positioning pattern suggests the market is pricing in a pessimistic baseline for most EM economies outside the tech-heavy Asian hubs.
Source: FXStreet Forex News