Emerging-market stocks moved higher as renewed optimism around artificial intelligence lifted technology shares across Asia.
The MSCI Emerging Markets Index rose as much as 1.4%, reaching its highest level since 26 June. South Korea was one of the strongest markets, with the Kospi gaining more than 3% as investors moved into technology stocks.
The move reflects growing confidence that AI investment will continue to support demand for semiconductors, servers, data centres and related infrastructure. Markets with significant exposure to these industries, including South Korea and Taiwan, are therefore becoming increasingly sensitive to changes in expectations around AI spending.
South Korea also benefited from currency strength, with the won reaching its strongest level in nearly two years. A stronger currency can support foreign demand for local assets, although it can also affect exporters depending on how long the move lasts.
Technology-heavy economies with strong exposure to AI infrastructure may be better positioned if spending remains firm, while markets more exposed to energy costs or higher borrowing rates could face greater pressure.
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.
