8216;Emerging market equities to rebound8217;

No central bank in its emerging market coverage would raise interest rates this year,it said in an Oct. 6-dated note.

Unless,the world is about to relapse into a 2008-9 style recession or the Euro is set to completely collapse,the long-term outlook for emerging markets equities looks positive,Citigroup said.

The brokerage said it expects a double-dip recession in the Euro area,but not in the United States,where it expects the economy to bounce back with a growth range of 1.5 percent-2 percent through end of 2012.

Citigroup is underweight on Russia,South Africa and Mexico as a result of the global financial turmoil and its impact on local business sentiment.

The brokerage is overweight on China,Korea,Malaysia,Turkey and Chile,and upgraded India to neutral along with Brazil and Taiwan.

The MSCI Emerging Markets Index ,which fell to a 2-year low of 824.39 on Oct. 4,was up 2 percent at 881.95 at 1010 GMT on Friday.