DOW JONES NEWSWIRES

This week's reversal in emerging-market bonds gives investors a chance to get into a sector that should continue outperforming other debt classes, say JPMorgan analysts, who on Friday upgraded the bank's benchmark emerging market index in their model portfolio.
In a research report, JPMorgan analysts said they would "take advantage of this week's correction" to recommended an overweight position in the closely followed EMBIG index. For similar reasons, they upgraded Venezuela's debt to overweight and Ukraine, Jamaica and Lebanon to marketweight.
"Technicals remain supportive for EMBIG, with $20.1 billion of sovereign financing raised year-to-date, compared to $45 billion of financing needs and $50 billion of cash flow from coupon and amortization payments," the report said.
JPMorgan also reiterated its 4.7% growth forecast for emerging-market economies.
"We expect a protracted pace instead of a V-shaped recovery globally, but freefall scenarios and tail events are far less likely to play out given the willingness and ability of IFIs [International Finance Institutions] to support [emerging market] countries," JPMorgan said.

-By Michael Casey, Dow Jones Newswires; michael.j.casey@dowjones.com; 54-11-4103-6740