Pictet upgrades EM stocks, cuts back on UK equities

LONDON (Reuters) - Swiss asset manager Pictet on Friday upgraded its exposure to emerging markets, saying it expected developing stocks to outperform many developed peers due to a swifter economic rebound.

“Led by China, the emerging world is enjoying an earlier and stronger economic recovery than advanced economies,” said Luca Paolini, chief strategist at Pictet.

He added that the firm, which has 177 billion Swiss franc (146.38 billion pounds) in assets under management, also reduced its exposure to UK stocks to underweight, citing an economy focused on services, hospitality and consumer spending that had suffered the most severe contraction reported by any major economy,

“The UK is braced for a wave of job losses in the coming months, at a time when Brexit uncertainty is already weighing on confidence,” Paolini added.

Reporting by Karin Strohecker; Editing by Maiya Keidan