AI rally and oil prices to drive EM asset divergence
While local-currency bonds in parts of LatAm and EM Europe may outperform those in Asia if oil prices fall, equities in those regions are likely to continue to lag their Asian peers as the AI rally enters its final stages. But if the AI bubble bursts, equities in EMEA and LatAm may prove more resilient, given their low exposure to the AI theme.
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