Emerging Markets Surge: Argentina and Turkey Lead the Charge

J.P. Morgan predicts substantial returns for Argentina and Turkey's equity markets exceeding 20% this year, spurred by policy reforms. Argentina's government is reducing inflation and capital controls, with its stock index showing impressive gains. In Turkey, falling inflation and interest rate cuts bolster market optimism.

J.P. Morgan analysts have projected that equity markets in Argentina and Turkey could witness returns surpassing 20% this year, fueled by policy reforms targeting inflation reduction.

Argentina's government under Javier Milei is aggressively working to curtail inflation and lift capital controls, moves expected to sustain the region's robust stock performance. The Merval index has already climbed 77% in dollar terms over the past 12 months, marking the second-strongest global showing.

Meanwhile, Turkey's ongoing decline in inflation rates paired with a series of interest rate cuts is laying a foundation for stronger equity performance. J.P. Morgan has recently upgraded Turkish stocks to 'overweight', with favorable policies expected to maintain the positive market momentum.

(With inputs from agencies.)