EM Weekly Kickstart

MSCI EM equities rebounded 3% this week, supported by robust foreign buying and significant earnings upgrades in tech-heavy North Asia. Goldman Sachs raised its 12-month index target to 1680, driven by a 25% EPS growth forecast for 2026.

Key Takeaways

• 1.MSCI EM rebounded 3% w/w led by tech-heavy North Asia (Korea and Taiwan) amid strong foreign institutional inflows.
• 2.YTD gains in EM equities are almost entirely driven by EPS upgrades, particularly in AI-driven tech and commodity markets.
• 3.Goldman Sachs raised its MSCI EM 12-month target to 1680, implying a further 12%/14% USD price/total return.

Table of Contents

• Focus: Further Earnings-led Upside
• 4Q Earnings Summary
• Allocation and Key Market Views
• Themes: Balancing AI/tech beneficiaries with domestics and rate sensitives
• EM Cyclical and Quality Themes
• CEEMEA Implementations
• Brazil Rate Sensitivity
• Performance Snapshot: Regions, Markets, Commodities and FX
• Leaders & Laggards
• Valuations in Context
• GEM Equity Fund Flows
• Fund Flows and Liquidity
• EM Macro Equity/Thematic Slices
• Style Monitor
• Macro Forecasts
• Equity Risk, Volatility and Correlation

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