Emerging Markets: Stirred, But Not Yet Shaken

Bullish:

• $KOREA - Korean equities expected to see 10-12% upside driven by strong earnings growth from AI theme and semiconductor demand

  • “So if I think about start with the bigger picture on emerging market equities, for example, we are expecting something like 10 to 12% upside from current levels.”

    Kamakshya·8:25

  • “Korea is the poster child of that earnings growth. Why is it having that very strong earnings growth? It's the AI theme. It's the fact that Korea, Taiwan, some of these North Asian markets supply the all important chips, semiconductors into this kind of AI supply chain, and the demand for that, and the pricing power that these firms have is second to none.”

    Kamakshya·8:44
• $TAIWAN - Taiwan benefits from AI-driven semiconductor demand with strong pricing power in the AI supply chain

  • “It's the fact that Korea, Taiwan, some of these North Asian markets supply the all important chips, semiconductors into this kind of AI supply chain, and the demand for that, and the pricing power that these firms have is second to none.”

    Kamakshya·8:50
• $BRAZIL - Brazil as energy exporter on right side of terms of trade divide, expected to consolidate and perform better as conflict deescalates

  • “Brazil is a good example of a place which is an energy exporter that has got hit as a result of the risk unwind. So you have a kind of domestic market that's an energy exporter that's on the right side of the terms of trade divide that should do well with the kind of shock that you've seen, but has obviously gotten hit as risk has been taken down everywhere. As the dust settles, if the conflict deescalates, I would expect to see some of these other commodity exporting markets like South Africa, like Brazil, to once again consolidate and do better.”

    Kamakshya·9:48
• $SOUTHAFRICA - South Africa as commodity exporter expected to consolidate and perform better as conflict deescalates

  • “As the dust settles, if the conflict deescalates, I would expect to see some of these other commodity exporting markets like South Africa, like Brazil, to once again consolidate and do better.”

    Kamakshya·10:07
• $EM - Emerging markets underweight in global allocations with 10-12% upside potential and improved macro resilience

  • “we are expecting something like 10 to 12% upside from current levels. A big part of that, or almost all of that, is coming from earnings growth. We expect very strong earnings growth through the emerging market universe.”

    Kamakshya·8:30

  • “EMs are roughly 12% of the overall benchmark. On our estimates, people's allocations in global equity funds are about 10%. So emerging markets, even after the strong run they had in 2025, even after the strong run they had in the first couple of months of 2026, asset allocators are underweight this asset class.”

    Kamakshya·11:54