Wall Street maintains an optimistic outlook on emerging market prospects in 2026.

These favorable informative factors are expected to drive the emerging market further up, with local currency bonds providing a return rate of 7% to investors, which is the best performance since 2020, and the currency index also increased by more than 6%. Morgan Stanley analysts indicate that as the US economy slows, The Federal Reserve (FED) may further lower interest rates, which will support the continuation of the market rise.

The bank advised clients to maintain a long position in local currency bonds in emerging markets, hoping that the return rate will reach around 8% by mid-2026. For dollar bonds in emerging markets, it is expected to reach a "high number" in the next 12 months.