BlackRock shifts to overweight emerging market stocks, betting on AI resources and earnings advantages.

BlockBeats news, September 15 - BlackRock has re-recommended overweighting emerging market equities, betting that access to scarce resources needed for the AI boom and strong earnings will drive outperformance. Strategists in the company's research division, including Wei Li, wrote in a report on Monday that South Korea and Taiwan, China are "at the core" of the semiconductor and memory chip supply chains, while Latin American markets offer investment exposure to commodities and infrastructure required for AI buildout. BlackRock expects that growing investment in this technology sector will drive up the value of these constrained resources and support corporate profits.

This move marks a reversal in BlackRock's stance from June. At that time, the world's largest asset manager downgraded emerging market equities from overweight to neutral, warning that AI concentration and leverage issues (especially in South Korea) had weakened the risk-reward ratio. BlackRock said that the deleveraging in South Korean stocks after the sharp sell-off in July provided support for re-overweighting. (Jinshi)