Emerging Market Equities

Latest edition · July 21, 2026

Emerging market equities en 1663672

UBS remains constructive on emerging market equities, anticipating that market leadership will broaden as earnings strength and macro recovery extend beyond AI-focused tech hardware.

Emerging market equities have seen strong but narrow year-to-date performance, driven by AI-exposed semiconductors in Korea and Taiwan. Despite a recent correction in these leaders, the broader earnings picture remains resilient, with forward P/E ratios compressing to 10x. UBS identifies this as an opportunity for market participation to broaden into cyclical and previously lagging segments, supported by stabilizing macro conditions and positive earnings revisions across Southeast Asia, EMEA, and Brazil.

Key takeaways from the latest edition

• 1.EM equity performance has been narrow, led by AI-exposed semiconductors, but recent volatility is a positioning unwind rather than structural deterioration.
• 2.Earnings remain resilient with valuations compressing; forward P/E is near 10x, and growth is broadening beyond North Asia.
• 3.UBS remains constructive on EM equities, favoring India (upgraded to Attractive), China, South Korea, and Malaysia.

What this series covers

• Is market breadth about to improve?
• From narrow leadership to broader EM participation
• Korea, AI cycle, and structural shifts
• Corporate fundamentals remain supportive
• Macro resilience should support broadening performance
• How to invest?
• Risks and catalysts
• Related reports
• Global asset class preferences definitions
• Appendix

Edition archive

• Emerging market equities en 1663672

  July 21, 2026

• Emerging market equities en 1661903

  June 18, 2026

• Emerging market equities en 1659524

  May 28, 2026

• Emerging market equities en 1660132

  May 25, 2026