Emerging market investors moved back towards selected Asian equities as appetite returned for technology-linked exposure, with artificial intelligence once again shaping sentiment across the region. The shift came after a period of sharper volatility, giving investors an opportunity to reassess entry points in markets closely tied to semiconductors, data infrastructure and broader AI supply chains.
The strongest focus remained on South Korea and Taiwan, where major technology names continue to hold significant weight in regional benchmarks. Their influence meant that a recovery in chip-related shares had an immediate impact on broader emerging market indices.
South Korea’s market saw renewed buying after steep pressure in the previous session, helped by demand for leading chipmakers. Samsung Electronics and SK Hynix attracted strong investor attention, reflecting the market’s continued willingness to back companies positioned around memory chips and AI-related hardware. Taiwan also advanced, with TSMC remaining central to investor views on global semiconductor capacity and AI infrastructure demand. Southeast Asian markets also participated, with Singapore, Thailand and the Philippines moving higher, while Malaysia gave back earlier gains and traded broadly flat.
Investors responded positively after Iran and Israel signalled a halt to attacks following an appeal from the US president. Even so, the situation remained an important market risk, particularly because of concerns around oil flows through the Strait of Hormuz and the absence of a durable peace agreement. For emerging markets, energy prices remain a key variable, especially for oil-importing economies where higher fuel costs can pressure currencies, inflation and central bank policy.
AI-linked growth themes continue to draw capital towards Asian technology leaders, while currency pressures, oil sensitivity and fiscal concerns still require careful country selection.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
