Can the China Rally Continue?

In this episode of "The Markets," host Chris Hussey interviews Stratford Dennis, Head of Emerging Market Equities, about the current state of emerging markets, particularly China. Dennis discusses the volatile trade war situation, expressing a base case for an agreement or extension while acknowledging downside risks. He remains confident in China's economic fundamentals due to policy measures and favorable valuations in Chinese equities, especially AI names, and low ownership. The conversation broadens to emerging markets ex-China, with Dennis favoring Brazil due to its impending cutting cycle, high interest rates, and light equity ownership. He also briefly touches on Argentina as a high-risk market and concludes by highlighting buying upside calls in Brazilian equities as his favorite trade, while also monitoring the impact of the U.S. government shutdown on market data.