Weekly Brief

Emerging market equities are up over 20% in 2026, driven by AI-related tech demand in Korea and Taiwan. Despite the rally, valuations remain attractive as earnings upgrades outpace price gains.

Key Takeaways

• 1.Emerging market equities have risen over 20% YTD in 2026, primarily driven by tech sector gains in Korea and Taiwan linked to AI capital expenditure.
• 2.EM valuations have actually decreased (from 13.3x to <12x forward P/E) despite price increases due to significant earnings upgrades in the tech sector.
• 3.The technology sector now accounts for approximately 40% of the MSCI Emerging Markets index, making it more sensitive to global AI sentiment than local economic drivers.

Table of Contents

• Thought of the week
• Tech has been the driving force behind EM equity returns
• The Week Ahead
• Market statistics

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