(Bloomberg) -- Capital Group, a manager of $1.4 trillion worldwide, says misguided assumptions among emerging-market bears have created investment opportunities after years of disappointing returns for the asset class.

It's misleading to assume that rising U.S. interest rates will hurt developing-country stocks, because they tend to beat developed-nation peers when the U.S. Federal Reserve is increasing borrowing costs, Capital Group wrote in a note to clients. Fears about China's slowdown may be overstated, while lower commodity prices could actually help net importers including China and India, the two biggest emerging economies, the firm said.

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