JPMorgan halves EM FX and local current debt 'overweights' on Middle East risks

LONDON, March 2 (Reuters) - Wall Street bank JPMorgan halved its emerging market FX and local currency bond 'overweight' positions on Monday as the U.S.-Israeli air war against Iran expanded with no end in sight.

"EM market reactions this morning have been negative, but limited, and we think there is an opportunity to reduce the size of our OW (overweights) in EM FX and EM Local Rates," JPMorgan said in a note to clients.

It added that it had also halved the sizes of overweights in the Hungarian forint and Turkish lira, and cut in half its local rates positions in South Africa and Romania.

"The duration of the conflict and what can come after are key calls to make, with an inherent large uncertainty," the bank's analysts added.