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All articles tagged with #emerging markets

Korean won climbs 8% in July on chip earnings repatriation and hawkish policy tilt
markets23 days ago

Korean won climbs 8% in July on chip earnings repatriation and hawkish policy tilt

South Korea’s won jumped nearly 8% in July, the second-best global performer after Colombia, as repatriation of overseas earnings by chipmakers, a tech stock sell-off, and a tighter policy stance supported the currency. Repatriation flows—estimates of about $1 billion per day mid-July to mid-August—along with Samsung and SK Hynix’s announced investments and a blockbuster US listing for SK Hynix, helped domestic demand for won. The Bank of Korea raised rates to 2.75%, with Q2 GDP at 3.7% and inflation at 3.2%, suggesting policy could continue to support the won even as the Kospi fell sharply on AI stock weakness. Foreign outflows moderated but remained net selling, underscoring a shift in flow dynamics that aided the won’s rebound.

via Financial Times|
#currencies#emerging-markets#foreign-exchange
AI-chip Giants Loom Over EM Indices, Sparking Diversification Concerns
business1 month ago

AI-chip Giants Loom Over EM Indices, Sparking Diversification Concerns

Investors are trimming bets on Asia’s chipmakers—TSMC, SK Hynix and Samsung—after a rally that left them nearly 29% of the MSCI Emerging Markets index, raising concentration concerns as the EM rally cools. Fidelity and BlackRock have reduced exposure amid volatility, with Korea’s market down more than 20% from its June high as foreigners sell about $100bn this year. Analysts warn the dominance of a few chip names could backfire if AI demand slows, competition rises, or new Chinese memory IPOs (CXMT and YMTC) expand supply.

via Financial Times|
#artificial-intelligence#asia-pacific-equities#business
Markets reset after the war: oil drops, dollar weakens, and rate cuts loom
business3 months ago

Markets reset after the war: oil drops, dollar weakens, and rate cuts loom

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.

via Robin J Brooks | Substack|
#business#dollar#emerging-markets
Honda Bets on Motorcycles to Steer Through EV Losses
business3 months ago

Honda Bets on Motorcycles to Steer Through EV Losses

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.

via RideApart.com|
#business#emerging-markets#ev-transition
Central banks warn US-stablecoins could deepen dollarisation in emerging markets
global-economy4 months ago

Central banks warn US-stablecoins could deepen dollarisation 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.

via Financial Times|
#dollarisation#emerging-markets#financial-stability
Hormuz Reopens, Rally Ignites: 3 Bets for 2026
business4 months ago

Hormuz Reopens, Rally Ignites: 3 Bets for 2026

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).

via Business Insider|
#business#emerging-markets#magnificent-seven
How to Invest $10,000 in a War-Driven Market: 9 Wall Street Pros Weigh In
markets4 months ago

How to Invest $10,000 in a War-Driven Market: 9 Wall Street Pros Weigh In

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.

via Business Insider|
#emerging-markets#geopolitics#investing
Iran conflict exposes concentration risk in Asia-heavy emerging markets
business5 months ago

Iran conflict exposes concentration risk in Asia-heavy emerging markets

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.

via CNBC|
#asia-concentration#business#emerging-markets