“Although both sides appear to be approaching a partial trade agreement, we remain cautious and expect to see some market volatility until a more comprehensive deal is finalised,” the team says.
“Despite the uncertainty, we continue to see investment opportunities across emerging markets. We expect overall corporate earnings to strengthen in 2020, as upturns in some parts of the technology sector offer support.
“We also consider valuations for emerging-market equities to be attractive relative to developed-market equities. Meanwhile, we remain on the lookout for areas where corporate governance could improve and potentially bolster shareholder value.”
Franklin Templeton says emerging-market equities rose in October and outpaced developed-market stocks. The MSCI Emerging Markets Index gained 4.2 percent over the month, compared with a 2.6 percent return in the MSCI World Index, both in dollars.