Investing in Emerging Markets

Latest edition · August 26, 2026

investing in em 26August ExUS accessibility SF

UBS maintains an Attractive stance on global and emerging market equities, upgraded Taiwan to Attractive, and highlights the resilient carry of EM sovereign USD debt and high-yielding currencies. Commodity allocations are recommended to buffer ongoing Middle East hydrocarbon disruptions and potential inflation shocks.

In this monthly flagship publication, UBS Chief Investment Office highlights broadening earnings growth across emerging markets, leading to an upgrade of Taiwanese equities to Attractive alongside mainland Chinese equities. EM USD sovereign bonds offer an attractive ~6.5% yield with positive returns expected across 90% of scenario probabilities. Furthermore, appealing carry supports high-yielding currencies such as BRL, MXN, ZAR, and INR amid US dollar softness. Given persistent geopolitical risks in the Middle East and fiscal uncertainties ahead of Brazil's October elections, broad commodity exposure (especially copper and energy) is advised to enhance portfolio resilience.

Key takeaways from the latest edition

• 1.EM equity earnings momentum is broadening beyond narrow AI beneficiaries across industrials, financials, and cyclical sectors; Taiwan equities are upgraded to Attractive.
• 2.EM sovereign USD bonds yield ~6.5% with investment-grade average quality (BBB-), delivering an asymmetric risk profile that generates positive returns in 90% of scenario probability weightings.
• 3.High-yielding EM currencies (BRL, MXN, ZAR, INR) offer attractive carry supported by resilient global growth and softer USD dynamics, though near-term positioning warrants discipline.

What this series covers

• Editorial
• Global investment views
• Middle East conflict
• Brazil
• Equities
• USD bonds
• Currencies
• Emerging market asset snapshot
• Emerging markets publications

Edition archive

• investing in em 26August ExUS accessibility SF

  August 26, 2026

• investing in em 22July ExUS accessibility

  July 22, 2026

• investing in em 27May ExUS accessibility

  May 28, 2026