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Morgan Stanley: Emerging Market Carry Trades Remain Viable Despite Yen Surge
Finance · Investment Banks/Brokers · yonhap_finance · 2026-09-09
Morgan Stanley analysts suggest that carry trade strategies in emerging markets remain resilient, citing strong fundamentals and global growth prospects.
What Happened
Market Outlook: Morgan Stanley analysts believe that the recent surge in the Japanese Yen is unlikely to derail carry trade strategies in emerging markets. They argue that unless there is a new catalyst for increased market volatility, these strategies can withstand the current currency fluctuations.
Investment Rationale: The firm points to global economic growth, favorable stock market outlooks, and the solid fundamentals of developing nations as the primary drivers for their positive stance. These factors continue to encourage investors to maintain their positions in emerging market assets.
Strategic Advice: Morgan Stanley maintains a constructive view on emerging markets and continues to recommend buying on dips. They believe that the combination of attractive carry returns and robust growth keeps the investment thesis intact.
Current Context: Despite the Yen reaching its highest levels since February, several emerging market currencies have shown resilience against the dollar. This suggests that emerging market assets are not as vulnerable to Yen strength as some investors initially feared.