Emerging market stocks were on the rebound, bouncing after a lengthy decline dating back to October of last year. The iShares MSCI Emerging Markets Index ETF (EEM) opened up and quickly climbed into a gain of more than 2 percent, doing so on heavy volume.
Driving gains was a solid day for Chinese equities as the financial sector made big gains on an endorsement from JP Morgan (JPM) analysts. The gain could also be a bounce back for emerging market securities, which experienced a steep sell-off since peaking in late October.
Chinese Markets Climb on Strong Day for Financials, JP Morgan Endorsement
Major Chinese equities ETFs were on the rise Tuesday, with the iShares FTSE China 25 Index (FXI) gaining over 3.5 percent and the iShares
"The rally is led by financials today because they are very cheap now," said
One potential reason for the spike, which gave some bounce to previously moribound market, was a particularly bullish statement from JP Morgan analysts recommending a buy on Chinese stocks.
"We recommend a trading buy of
China Stocks Extending Rally in 2014
Chinese equities are currently in a rally that comes after a steep sell-off in 2013 on the heels of concerns about contracting manufacturing and a potential credit crisis.
The Shanghai Shenzen CSI 300 Index climbed over 650 points from a low in late November of 2012 to peak at 2,775.84 on
"The market has stabilized," said
Rebound for EEM?
However, since reaching that low, emerging market stocks have rebounded, potentially driven by value buyers playing against the downtrend. Since last Thursday, shares have climbed over 5 percent.
"When there are these sentiment swings, the markets do throw up opportunities for those who look," said