March proved to be a punishing month for emerging market (EM) equities. The escalation of conflict in the Middle East, centred on rising tensions with Iran and a significant disruption to shipping through the Strait of Hormuz, rattled global financial markets. This triggered a broad risk-off move, and a repricing of global inflation and growth expectations.

Emerging market equities delivered a strong start to the year, with the MSCI Emerging Markets Index rising 8.9% for the month and outperforming developed markets. A weaker US dollar and continued strength in technology-related sectors supported returns. Semiconductor demand and optimism around artificial intelligence (AI) were key contributors as demand expectations improved, while geopolitical risks in Eastern Europe and the Middle East remained a secondary concern for markets.

Global markets delivered a mixed performance over the month as investors navigated a patchy environment amid a renewed bout of volatility. Concerns that enthusiasm around artificial intelligence (AI) may have run ahead of fundamentals resurfaced, while several regions also faced local macroeconomic headwinds. As a result, market conditions were characterised by uneven returns and shifting investor sentiment.

Emerging market (EM) equities continued to advance in October, supported by strong performance across the emerging Asia region. The MSCI Emerging Markets Index rose 4.2%, outperforming the MSCI World Index, which recorded a more modest 2.0% gain. 

Emerging market (EM) equities delivered strong returns in September, reaching new highs for the year. The MSCI Emerging Markets Index rose 7.1%, outpacing developed market equities, which edged up by 3.2%. The rally was driven by firm commodity prices and a weaker US dollar, which encouraged risk-taking among investors. China led the upswing, while South Africa and Brazil also outperformed on the back of their commodity exposure and currency strength.

Emerging market equities delivered another positive month, albeit underperforming relative to developed market peers. Trade tensions once again dominated the headlines with Washington’s “reciprocal tariffs” leaving many trading partners facing higher tariffs while others secured temporary truces to keep negotiations going. The MSCI Emerging Markets index was up by a modest 1.3%, largely driven by strong performance from China and the Latin America region, while the MSCI World Index gained a stronger 2.6%.

Global markets ended July on a positive note, with the MSCI World index up by 1.3%. Emerging markets (EM) continued to outperform their developed market (DM) peers, as the MSCI Emerging Markets index gained 2.0% for the month. Performance was lifted by the ongoing artificial intelligence (AI) boom, although lingering tariff risks and US dollar strength provided headwinds for EM equities.