BlackRock downgrades emerging market stocks due to artificial intelligence risks

According to Odaily, the research arm of BlackRock Group highlighted in its 2026 mid-term global investment outlook report that it remains cautious about emerging market equities, while favoring short- and medium-term government bonds in the eurozone. For the former, the report pointed out a concentration risk related to artificial intelligence.

For the latter, the report believes that policy concerns regarding interest rate prospects appear to be overblown. The world’s largest asset management company has downgraded its rating on emerging market equities for the next 6 to 12 months from “overweight” to “neutral.” The report noted that markets such as South Korea face risks, as they are highly dependent on artificial intelligence-related companies. (Golden Ten Data)