Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Morgan Stanley cuts MSCI EM target, sees growth in Japan, India

Published Nov 16, 2023 06:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
MSCIEF
+0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
+0.52%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Morgan Stanley has updated its economic forecast for several major markets in 2024, with a mixed outlook that highlights growth potential in Japan and India while predicting underperformance for China and other emerging markets. The financial firm's analysts expect Japan's ongoing corporate reforms to fuel robust GDP and earnings per share (EPS) growth. Simultaneously, India's young population is anticipated to drive significant economic progress.

In a contrasting scenario, China and emerging markets are likely to face economic headwinds. Morgan Stanley cites a global growth slowdown, debt-deflation issues, increasing interest expenses, and a weakening US dollar as contributing factors to their subdued outlook. The MSCI Emerging Markets (EM) Index target has been revised downward to 1,000, representing a modest 4% upside. This adjustment reflects a decreased earnings forecast by an additional 5% for the period from 2023 to 2025.

Specifically for China, the real GDP growth is expected to be limited to 4.2%, with nominal GDP seeing a slight increase to 4.8% in 2024. The Chinese yuan is forecasted to weaken against the US dollar, potentially reaching an exchange rate of 7.5 in the first half of 2024.

India's economy, however, is projected to experience robust growth with nominal GDP expected to expand by 11.6% in 2024 and by 11.2% in 2025. This optimistic projection is largely attributed to the country's youthful demographic profile, which is seen as a key driver of economic activity.

Japan's outlook is also positive, with the nation appearing to emerge from three decades of economic stagnation. Accelerated corporate reform efforts are seen as a critical factor in driving the country's GDP and EPS growth forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Morgan Stanley cuts MSCI EM target, sees growth in Japan, India
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email