---
title: "Emerging Markets update: August 2026 in review"
date: 2026-09-29T07:39:20Z
modified: 2026-09-29T07:42:51Z
permalink: "https://riscura.com/report/emerging-markets-update-august-2026-in-review/"
type: report
status: publish
excerpt: Emerging market equities staged a 3.4% recovery in August, bringing a two-month period of declines to an end and outperforming developed market peers.
wpid: 47479
categories:
  - Insights
  - Commentaries
tags:
  - Insights
  - Commentaries
  - Emerging Markets
  - Global Markets
  - Investment insights
  - RisCura Global team
  - Market Commentary
riscura_author:
  - RisCura Global team
report_group:
  - Market Commentary
timestamp: 2026-09-29T07:42:51Z
---

Ongoing investment in artificial intelligence (AI) infrastructure and resilient semiconductor demand remained key themes during the month, while improving inflation dynamics provided an additional tailwind in several EM markets. Sentiment however, remained sensitive to elevated US Treasury yields, renewed tensions in the Middle East and ongoing debates around the sustainability of AI investment.

Asia remained an important contributor to overall performance, with Taiwan and South Korea rebounding from a weaker July, supported by their central roles in the global semiconductor and AI supply chains. In Taiwan, robust chip demand and continued investment in AI infrastructure supported export growth and a further expansion in manufacturing activity, providing a favourable backdrop for technology-related equities and the earnings outlook. Meanwhile, in South Korea, a recovery in semiconductor stocks, improving export demand and shareholder-return initiatives supported gains.

Performance across other emerging regions was more mixed. South Africa led the entire EM index, buoyed by a rally in precious and industrial metals and a softer than expected inflation print that strengthened the case for monetary easing. In the Gulf, Saudi Arabia and the UAE also moved higher on resilient economic activity and solid corporate earnings, with Saudi Arabia drawing additional strength from higher oil prices and continued progress on economic diversification. Turkey gained as disinflation revived hopes of lower rates, while Poland’s advance was underpinned by robust domestic demand and healthy profits among local companies.

Conversely, China was a notable laggard as soft domestic demand, weak economic data and a lack of meaningful policy stimulus continued to sap investor confidence. India was broadly flat despite strong second-quarter GDP growth, substantial foreign portfolio inflows and improved corporate profit growth, with higher oil-price volatility, rate expectations and relatively demanding valuations constricting returns. Brazil also underperformed amid signs of slowing growth, fiscal concerns and heightened political focus ahead of the October presidential election.