Archive · 2 Nov 2025
Emerging Market Stocks Hit 30-Year Milestone With 10 Months of Gains
Imagine money is like a ball, and investors are people who want to get the most balls.
For ten months in a row this year, people have been putting their money balls into emerging markets, like in Asia and China, making those markets grow a lot.
This is because new computer technologies are booming, the US dollar isn't as strong, and China is giving its businesses a little extra help.
It's like the best winning streak for these markets in thirty years!
Even though they had a small dip recently, many think this good run could continue because these markets are offering more than just old-fashioned businesses now.
Investors are also looking at emerging market bonds, which are also doing well.
Emerging market stocks have risen for 10 consecutive months, a feat not seen since 1993.
The MSCI Emerging Markets Index is up approximately 30% year-to-date.
Key drivers include a boom in AI-focused tech stocks, a weaker dollar, and stimulus measures in China.
Emerging market stocks are outperforming their US counterparts for the first time in eight years.
Investors are showing caution due to uncertainty about potential Federal Reserve interest rate changes in December.
- Who
- Emerging market investors and money managers
- What
- Emerging market stocks have risen for 10 consecutive months, marking the first time since 1993, with a year-to-date gain of about 30%.
- When
- January to October 2025, with the trend noted in early November 2025.
- Where
- Emerging markets globally, with a focus on AI-related tech stocks in Asia and stimulus in China.
- Why
- Driven by a boom in artificial intelligence, a weaker dollar encouraging diversification from US assets, targeted stimulus in China, and a perceived easing of US-China tariff frictions.
Positive Outlook
Cautious Outlook
Overall Market Trend
Positive Outlook
Emerging market stocks are experiencing a multi-year rally, driven by technological advancements (AI), a weaker dollar, and supportive stimulus, leading to strong outperformance.
Cautious Outlook
The rally is potentially overextended, with a sharp correction possible if the Federal Reserve does not lower interest rates in December or if another unforeseen shock occurs.
Catalysts for Growth
Positive Outlook
The diversification of emerging markets into tech and other intellectual property-heavy sectors is a fundamental shift creating sustained growth.
Cautious Outlook
Optimism fueled by trade truce announcements and optimistic tones from leaders, while positive for risk assets, lacks detailed incremental policy changes.
- Index
- MSCI Emerging Markets Index
- Year-to-Date Gain
- Approximately 30%
- Consecutive Monthly Gains
- 10 months (January-October 2025)
- Previous Record
- 1993
- Outperforming US Equities
- First time in eight years