Emerging-Market Selloff 'Overdone'

UBS CEO sees investors exiting EM assets faster than environment justifies, emphasizes importance of country-specific decision-making.

The selloff in emerging-market (EM) assets that sent the benchmark equity index to the lowest valuation since the 2008 financial crisis may have gone too far, according to UBS AG Chief Executive Officer Sergio Ermotti.

“What we are seeing right now is a lot of money exiting the emerging markets,” Ermotti, the head of Switzerland’s biggest bank, said in Zurich on Bloomberg Television’s “Countdown.” “Short term, it looks a little bit overdone.”

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