The fundamental strength of emerging markets was recently reaffirmed by January purchasing managers’ indices, with nearly 90% of EM countries registering in expansionary territory.In an environment in which a broad range of markets, from equities to US Treasuries, have sold off, EM local rates have been surprisingly immune. Despite this de-correlation with risk markets, we do not believe that EM local rates are due for a correction: fundamental factors remain very solid and valuations are compelling, suggesting that demand for the sector will persist.

– source JPMAM

For further information, please read the attachment (PDF)