New Delhi, Oct. 17 -- Global financial markets could see the bull market in risk assets regain momentum as strong economic growth, corporate earnings and artificial intelligence-driven productivity support returns despite rising bond yields, according to a report by Morgan Stanley.

The report said higher yields largely reflect resilient nominal economic growth rather than deteriorating economic conditions, supporting its decision to turn overweight on global equities relative to fixed income.

"As the forces driving yields higher begin to fade, we expect the bull market in risk assets to reassert itself," the report said.

Morgan Stanley said stronger growth continues to support corporate earnings, cash flows, employment, consumption and...