Major financial institutions, including JPMorgan, Morgan Stanley, AQR, and Franklin Templeton, have turned more optimistic on emerging market (EM) equities, with some suggesting that 2025 may mark the start of the next EM bull run. The outlook is supported by a weakening US dollar, easing US-China trade tensions, and concerns over US debt and Treasury performance. JPMorgan has upgraded its investment rating on emerging market stocks from 'neutral' to 'overweight,' following a recent agreement between the US and China to reduce tariffs for 90 days. US tariffs on Chinese goods have been lowered from 145% to 30%, while China has reduced tariffs on US imports from 125% to 10%. JPMorgan analysts highlight opportunities in markets such as India, Brazil, the Philippines, Chile, the United Arab Emirates, Greece, and Poland, and see particular potential in Chinese technology stocks. Hong Kong shares have outperformed mainland Chinese equities by the largest margin in nearly two decades, with the Hang Seng Index rising 16% this year. Some emerging markets have posted double-digit gains in 2025. JPMorgan notes that investors seeking to diversify away from concentrated US technology stock holdings should consider emerging markets. However, Wells Fargo has advised investors to favor US stocks and avoid emerging markets, citing concerns about weak long-term performance, structural risks, political instability, and ongoing economic issues in China.