US Dollar Depreciation and Emerging Market Growth: Expected further US dollar depreciation and robust emerging market fundamental health, coupled with an expanding EM economic growth premium over developed markets, create a positive environment for EM assets.

Global Disinflation and Accommodative Monetary Policy: China's disinflationary impulse and potential AI-driven productivity gains are expected to lead to lower global inflation, giving central banks (including the Federal Reserve) room to ease monetary policy, supporting stable global GDP growth and faster growth in some emerging economies.

Emerging Market Specific Factors: Emerging markets benefit from consistently superior aggregate growth compared to developed markets, underappreciated structural developments (like the shift to local currency funding), and controlled inflation with high policy rates, allowing for potential monetary policy easing to support economic growth.