Six reasons emerging markets are back in focus

AI-led growth – North Asia sits at the centre of the global AI hardware supply chain, from semiconductor manufacturing and testing to networking and infrastructure. Favourable macro conditions – A weaker US dollar and lower interest rates have helped improve financial conditions across many emerging economies. Attractive valuations – Emerging markets continue to trade at lower valuation multiples than many developed market peers, despite improving earnings in several regions. Earnings momentum and governance reforms – Corporate earnings, shareholder returns and governance standards are improving across a number of key emerging markets. Diversification beyond developed markets – China, India, Latin America…