Dec 12 (Reuters) - BlackRock's strategist Richard Turnill:
* Says fears of deflation, dominant earlier in the year when oil prices plunged, have faded in the U.S.
* Downgraded U.S. Treasuries, upgraded outlook for Japanese stocks, and have moved neutral on European credit (from overweight)
* "Inflation expectations are rising due to pick-ups in wages and growth, as well as likely fiscal stimulus"
* Since higher growth, inflation can benefit emerging market growth without hitting currency values, EM assets holding up better
* We expect treasury inflation protected securities (TIPS) market pricing to keep edging up, which is why we favor TIPS Further company coverage: