Emerging markets index to surge

Goldman Sachs urges investors to buy in China, forecasts gains

The biggest tumble in developing-nation stocks in 11 months is making investment strategists at Morgan Stanley, Credit Suisse Group AG and Goldman Sachs Group Inc as bullish as ever.

Morgan Stanley's Jonathan Garner predicted the MSCI Emerging Markets Index would surge 34 percent by the end of 2010 as corporate profits jump 40 percent. Sakthi Siva of Credit Suisse said declines in the 22-country gauge may be limited to 5.3 percent. Goldman's Thomas Deng recommended investors buy in China, where he forecasted the CSI 300 Index will gain 36 percent in the next 10 months.