The Brazilian joined City from CSKA Moscow in a big-money move last summer but he found it difficult to adjust to the demands of English football.
He was not able to hold onto a regular starting role and, with competition for places up front increasing in January following the arrival of Craig Bellamy, Hughes decided to let him link up with Everton.
Jo has found some form with the Toffees and Hughes is confident he can forge a successful career in the Premier League.
The City boss is looking forward to working with Jo again after he has gained experience and improved certain aspects of his game.
Intense"The reason I allowed him to go was that I felt he wasn't going to get a chance to play here this season," Hughes explained.
"What the lad needs is Premier League football. I expect him to get better and develop in terms of what is required to play in the Premier League.
"It is much more physical and intense than he is used to and I think that probably took him aback. He struggled to cope with it.
"Most attack-minded players find it hard to come to the Premier League and hit the ground running. Andrey Arshavin is the same at Arsenal.
"The Premier League is just so much more intense than anywhere else."