UBS Neutral on EM Stocks; Favors Tech in China, S. Korea

UBS Neutral on EM Stocks, But Favors Tech

Chipmaking stocks in Taiwan and South Korea, namely TSMC and SK Hynix Inc, have seen a big increase in their value over the past year. This is because they are in high demand for making chips used in artificial intelligence (AI). UBS, a well-known brokerage firm, says it is neutral about the overall broader emerging market (EM) stocks since there is a lot of political uncertainty and limited potential for growth because of rising interest rates in the U.S..