Archive · 19 Jul 2026
Emerging Markets Expected to Outperform in H2 2026
HSBC says that in the second half of 2026, countries that are still growing and developing, called emerging markets, might do better than other countries.
This is because they have good prices for investing, inflation is going down, and central banks are helping.
Also, computers that learn, called AI, are making some companies in places like South Korea and Taiwan do well.
Countries that sell things like oil and metals are also doing better.
HSBC thinks that the United States central bank will not change their rules this year.
But they also say that investing in AI might make some parts of the market go up and down quickly.
Emerging markets expected to outperform in H2 2026 due to attractive valuations and easing inflation.
AI-led growth and strong corporate profits supporting market resilience.
Emerging market equities returned 24% in H1 2026, outperforming US and developed markets.
India and China highlighted for potential gains in H2 2026.
Federal Reserve expected to remain on hold through 2026.
- Who
- HSBC
- What
- Research report on emerging markets and AI-led growth
- When
- Published on July 19, 2026
- Where
- Global, with focus on Asia and emerging markets
- Why
- Attractive valuations, easing inflation, and AI-led growth
- Expected Performance
- Emerging markets poised to outperform in H2 2026
- Valuations
- MSCI Emerging Markets Index at 11.5x forward P/E
- Global Equities Valuation
- 17.5x forward P/E
- H1 2026 Returns
- 24% return for emerging market equities in USD terms
- Key Markets
- India and China highlighted for potential gains
- Investment Theme
- AI and technology sector growth
- Federal Reserve
- Expected to remain on hold through 2026
- Report Date
- July 19, 2026