Emerging Market Equities

UBS maintains an Attractive rating on EM equities with a 1,820 target for Dec 2026, driven by a 58% earnings growth forecast and the global AI buildout. Prefer exposure to China tech, South Korea, Indonesia, and Malaysia while downgrading Brazil to Neutral.

Key Takeaways

• 1.UBS remains Attractive on emerging market equities, forecasting 58% earnings growth in 2026.
• 2.The Dec 2026 target for the MSCI EM index has been revised to 1,820, supported by AI innovation and manufacturing leadership.
• 3.Brazilian equities have been downgraded to Neutral due to political uncertainty and a less supportive monetary outlook (Selic rate terminal raised to 14%).

Table of Contents

• Emerging market equities
• Upside scenario
• Downside scenario
• Global asset class preferences definitions
• Appendix
• Risk information

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