“Emergent Seven” puts EM stocks in the spotlight

Emerging markets are showing signs of a more durable rebound, helped by stronger corporate fundamentals, attractive valuations and a growing role in the global AI supply chain. Technology leaders in Asia, especially in Korea and China, are gaining importance as investors look beyond U.S. megacaps for growth opportunities.

Korea stands out for its improving governance and broader exposure to defense, power infrastructure and AI-related spending. China still offers meaningful innovation potential, but the recovery remains uneven and calls for selectivity.

Resource-linked markets may also benefit from rising demand tied to AI infrastructure and a firmer commodity backdrop. Even so, investors should stay mindful of volatility, geopolitical risks and sector concentration as EM leadership evolves.