BlackRock Downgrades Emerging Market Stocks Rating Amid AI Risks

Odaily reported that BlackRock's research institute, in its mid-2026 global investment outlook report, stated that it is cautious about emerging market stocks while favoring short- and medium-term eurozone government bonds. Regarding the former, the report highlighted risks associated with AI concentration.

For the latter, the report suggests that policy concerns over the interest rate outlook appear overblown. The world's largest asset manager has downgraded its rating on emerging market stocks from "overweight" to "neutral" for the next 6 to 12 months. The report noted risks in markets such as South Korea, which are highly dependent on AI-related companies. (Jin Shi)