All articles tagged with #emerging markets
The AI boom is going global as emerging markets outpace the US in some stock-market gains, led by Korea and Taiwan’s chipmakers; while AI could boost business formation and productivity, it may also widen inequality and shift market leadership toward Asia, suggesting a potential reordering of global investing dynamics as the AI trade unfolds.
Following a potential peace with Iran, the author forecasts a rapid drop in oil prices, a return to Fed rate-cut pricing, and a weaker U.S. dollar—essentially a reversion to the pre-war playbook, with oil easing and the dollar softening especially against emerging markets, though long-term yields may not fully retrace; the timing hinges on concrete peace and normalization of Hormuz shipping.
Honda reported about a $2.55 billion operating loss for the fiscal year ending March 2026 due to costly EV initiatives, canceled three planned North American EV launches, and warned EV losses may continue into 2027. Yet its motorcycle division is expected to return Honda to operating profitability next year, making two-wheel bikes the company’s financial stabilizer as affordable, high-volume transport remains crucial in emerging markets.
Senior central bankers warn that the rapid rise of USD-denominated stablecoins used in international payments could accelerate dollarisation in emerging markets, threaten monetary sovereignty, and facilitate illicit activity and capital-control evasion; while some officials see faster, cheaper cross-border payments as a benefit, regulators are racing to craft rules and a BIS-led effort to tokenize deposits aims to counter the threat; EM holdings of dollar stablecoins could reach about $1.22tn by 2028, up from roughly $173bn today.
Oil flows resume as Iran says the Strait of Hormuz is open, lifting sentiment and fueling expectations for inflation relief and potential Fed rate cuts. Strategists favor three themes: 1) small-cap stocks that tend to be cyclical and benefit from lower borrowing costs and faster R&D tax relief; 2) Asian emerging-market equities, especially those tied to AI and supply chains; and 3) the Magnificent Seven mega-caps, whose valuations have cooled. Investors can gain exposure via funds like VB, IJR, DFAS (small-caps); EEMA, SCHE (EM Asia); and MAGS, MGK (Magnificent Seven).
Nine Wall Street pros outline how to deploy $10,000 amid Iran-war volatility, with strategies ranging from buying mega-cap growth and AI leaders (the Magnificent Seven) to preserving cash until a clearer entry point; others favor diversification into infrastructure, large-cap value, and higher-quality fixed income, or chasing emerging markets and US mid-caps with a mix of cyclical plays, dividends, and short-duration assets. The consensus is to stay diversified, time entries via signals like the VIX, and blend growth exposure with value/defensive plays and selective healthcare and AI beneficiaries to navigate geopolitical turbulence.
Emerging-market stocks erased their 2026 gains as the Middle East war sparks an energy crisis that risks slowing growth and accelerating inflation; the MSCI Emerging Markets Index fell as much as 0.9%, with Asia’s gauge briefly reversing its 2026 advance as heavyweights like Samsung Electronics and SK Hynix dragged the region higher.
The U.S.–Iran military conflict has driven oil higher and highlighted that broad emerging markets ETFs are heavily skewed toward Asia (China, Taiwan, India, South Korea), creating concentration risk as tech-heavy stocks like TSMC and Samsung dominate the index; volatility in South Korea has surged amid energy-supply concerns, while strategists advocate a barbell approach—maintaining Asia exposure while adding Latin America (Argentina, Brazil, Colombia) to diversify and potentially benefit from cheaper valuations.
Global X executives say the case for EMs strengthens with a softer dollar backdrop and ongoing geopolitical risk, advocating buying the dip in emerging markets, while eyeing energy dynamics and related plays such as USO; EEM has fallen this week but remains up for the year.
Hedge funds are profiting from the surge in Venezuela's bonds, highlighting increased investor interest and potential risk in emerging markets. The article discusses the recent performance of Venezuelan debt and its impact on hedge fund strategies.
Emerging-market stocks reached a near five-year high at the start of 2026, driven by optimism around AI developments in Asia and strong performances in technology shares, with regional currencies showing mixed movements amid global economic expectations.
Three veteran traders from 'The Big Short' era, Danny Moses, Vinny Daniel, and Porter Collins, are all betting on a significant decline in the US dollar by 2026, with a focus on gold and emerging markets like China and Brazil as key investment themes, reflecting a cautious outlook for the macroeconomic landscape.
The article discusses the strong performance of emerging markets in the past year and explores potential developments and trends that could shape their trajectory in 2026.
In 2025, global stock markets reached near all-time highs driven by optimism about artificial intelligence and broader investor confidence, with Asian emerging markets borrowing at historic lows and American firms paying minimal bond premiums since the 1990s.
Legendary investor Mark Mobius warns of a potential 40% correction in AI stocks due to high valuations and excessive spending, but suggests investing in emerging markets, which have outperformed the US market this year, as a promising alternative.