MSCI EM oversold, provides buying opportunity: JPMorgan

Adrian Mowat, JPMorgan said MSCI Emerging Market (EM) is now down 28 percent below its April 28 high, the largest correction since October 2011. MSCI EM is now in oversold territory, he added.

According to him, the dominant drivers of the current correction are lingering fears over the impact of a Fed lift-off, the sharp correction in Chinese A-shares, Yuan devaluation amid weak economic growth, risk to Brazil's investment grade rating, commodity price declines, Turkish politics and the lack of topline growth for tech.

"Following the Yuan devaluation, EM bond fund redemptions are building. This puts further pressure on currencies and can constrain monetary policy. These conditions drive an overshoot," Mowat said.

He feels this, as it has in the past, should prove to be a buying opportunity.