Emerging markets overtake the United States and Europe by 2025, confirming a relevant change in the relative dynamics of global markets. This improved behavior reflects increasing attractiveness supported by higher economic growth, a weaker dollar and an increase in the weighting of high-value sectors, especially technology.
Dear 2026, from A&G we hope this momentum continues. While the global trend is normal and values in some segments of developed markets are challenging, emerging markets offer a balanced mix of growth, technology and reasonable prices that warrant increased investor attention in 2026.
Likewise, reviews of the rise of business benefits in emerging markets reflect this vision. These exceed estimates of the benefits of developed countries outside the United States, as the recovery of outcomes in these countries continues to be slower.
In addition, due to recent good behavior, Emerging market values remain interestingstrengthening the attractiveness of this area of the market from the point of view of diversification.
Growth led by Asia’s technology sector, which has caught up with the United States.
Asia has been the main driver of this development, with the technology sector leading much of the growth to 2025. Structural demand remains solid, technology exports to the United States from Asian countries have gained weight versus oranges in their conjunction, and company values remain reasonable relative to the rate of growth in benefits.
In addition, the strategic competence between the United States and China, capable of generating episodes of uncertainty, leads to sustained reversals in advanced manufacturing and advanced high-value technologies, creating a favorable environment for many Asian companies.
This change in trend was clearly reflected in the composition of the MSCI Emerging Markets index, where the weight of the technology sector increased to around 30%. While the launch of ChatGPT in November 2022 acted as a catalyst for the United States’ technological leadership, the start of 2025 marked a tipping point.
Disruption of the artificial intelligence model DeepSeek It prioritized the relative recovery of the emerging technology sector in the United States and initiated a second phase of more balanced convergence in both regions.
Compared to the values, there have been many since the beginning of the year, and as in the common states, these increases in technology values are more separated. Regardless, the gap with the United States continues to widen.
The MSCI Emerging Markets PER is well below the S&P 500, which reflects the great skepticism of part of the market. This breach in value acts as a blanket against potential gulf situations and offers the market an alternative to a reversal.
*** Cristina Delgado, A&G Consulting and Analytics Team.
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