iShares MSCI Emerging Mkts Val Fac ETF(EVLU.US)

Emerging market stocks rally appears intact after buoyant January inflows

Emerging market stocks rally appears intact after buoyant January inflows

MSCI Emerging Markets Benchmark Stock Index fell 1.7%, marking its worst single-day performance since November 2025, with the cumulative increase in January narrowing to about 9%, yet still the best monthly performance since 2012. Meanwhile, the Emerging Markets Currency Index declined by about 0.3%, with the cumulative increase in January narrowing to 0.6%. The South African Rand fell 2.6% against the US Dollar on Friday, its worst performance since April

Emerging markets make roaring start to 2026 as dollar slides

The weakening of the US dollar triggers a "major repositioning": Emerging markets surge by 11%, with a market capitalization increase of $1 trillion, and stock markets in multiple countries rise by over 20%

The US dollar has fallen to a four-year low, prompting a massive shift of funds from US stocks to emerging markets. The MSCI Emerging Markets Index surged nearly 11% in January, with a total market capitalization growth of over $1 trillion this year. The core driver is the reversal of the strong dollar cycle, which has released the hidden fundamental improvement dividends in emerging markets, while the AI chip and commodity boom have also directly boosted related assets

John Woods: It’s Emerging Markets' «Time in the Sun»

John Woods, Lombard Odier’s Asia CIO, believes emerging markets are poised for growth as investors rotate out of the US amid a weakening dollar. He notes that the US's expansionist policies under President Trump, including military actions, will continue to shape markets. Woods anticipates a lower dollar due to expected interest rate cuts, which historically benefits emerging markets. He highlights interest in Chinese equities and EM hard currency debt, stating that it's now emerging markets' "time in the sun." Lombard Odier favors EM equities and gold while being underweight in US assets.