Emerging Markets: Strong start in 2026 – HSBC
|HSBC's report highlights a robust start for Emerging Markets (EM) in 2026, with the MSCI EM index rising approximately 11% in USD terms. This performance contrasts with a mere 2% increase for the MSCI US index. The report attributes this outperformance to improvements in regional structural stories and company fundamentals, alongside a decline in the US Dollar.
Emerging Markets outperforming US stocks
"Overall, EMs are proving again in 2026 that they can be both lucky and good, with the tailwind of dollar weakness acting as a catalyst for attractive structural stories and improving fundamentals and profits."
"Amid further signs that global investors have cooled towards dollar assets – with the dollar itself falling sharply last week – the EM momentum trend is accelerating."
"Some EM specialists point to structural reforms and the prospect of lower rates providing relief to the fiscal outlook as positives."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.