A broad advance across emerging market assets has gathered pace in recent weeks, supported by a softer US dollar, firm demand for technology exposure and renewed capital flows into developing economies. Within that context, South Korea has moved ahead of France in global equity market rankings by capitalisation.
The reordering is significant for asset allocators. Market capitalisation rankings influence benchmark construction, passive flows and the perception of systemic importance. As South Korea climbs the table, its weighting in global and regional portfolios becomes more consequential.
The strength of the Korean market has been closely linked to its technology and semiconductor complex, which sits at the centre of global supply chains. Companies listed on the Korea Exchange have benefited from sustained demand for advanced chips and related components, areas that remain strategically important for industrial policy and corporate investment worldwide. As earnings expectations in these sectors have stabilised and, in some cases, improved, equity valuations have responded accordingly.
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.
