"30-Year Highest Performance in Emerging Markets!"

Strongest Rise Since 1993

Emerging market stocks are set to close in the positive for the 10th consecutive time in October. This extraordinary rise is driven by momentum in the artificial intelligence (AI) sector along with the depreciation of the dollar. This situation has paved the way for a significant increase in capital inflows to emerging markets.

MSCI Emerging Markets Index

The MSCI Emerging Markets Index experienced a decline of 0.2% in the morning hours, but has recorded a 4.8% increase since the beginning of October. From January to October, this index has drawn attention by exhibiting a performance not seen since 1993.

Artificial Intelligence and Sector Dynamics

Stocks of companies in the semiconductor, hardware, and data center supply chains in Asia have seen a strong rise due to global demand for artificial intelligence. With this momentum, emerging market stocks are expected to bring approximately $6 trillion in additional value to investors throughout 2024.

Weakening Dollar and Market Orientation

Former US President Donald Trump's trade policies and the weak dollar have accelerated investors' shift towards assets outside the US. Targeted incentives implemented by China have also been an important factor supporting profit forecasts.

Rise of the Technology and Healthcare Sectors

AllianceBernstein portfolio manager Sammy Suzuki highlighted that the weak dollar is the biggest driving force. Emerging markets are no longer limited to banking, commodities, or telecommunications; technology, consumer, and healthcare sectors are also rapidly emerging.

Return Rate Since the Beginning of the Year

The index's return since the beginning of the year has reached 31%, marking its strongest performance since 2017. It is noted that approximately half of this gain came from AI-related stocks. Another significant development is that emerging market stocks have outperformed US markets for the first time in eight years.

Future Expectations

Profit forecasts for companies within the MSCI have reached their highest level since February 2022. Additionally, the index is trading at about 39% discount compared to US stocks in terms of forward price/earnings ratios.