Markets focused on politics, energy and AI: Hungary and Peru point to more market-friendly outcomes, US pressure on Iranian oil raises risk, AI-led growth remains strong from the US to Korea, while Colombia was downgraded and Turkey’s outlook softened.

Watch the replay of this insightful webinar where Gustavo Medeiros, Global Head of Research, and Alexis de Mones, Portfolio Manager for Emerging Markets Debt, discussed their views on the resilience of EM Frontier debt markets in the current environment.

Risk assets have rebounded since last Tuesday, but risks remain high as Trump’s Iran deadline looms. Strong US payrolls suggest the cyclical upswing remains intact, while several EM policymakers kept a cautious stance on rates, fuel and energy.

Emerging View examines the Strait of Hormuz tail-risk, rising energy prices and supply strains, comparing today’s backdrop with past oil shocks and assessing what the Iran-US conflict could mean for emerging market assets.

Middle East tensions remain unresolved as EM performance diverges. Korea’s exports and India’s fuel-tax cuts support Asia, while policy and political risks persist in Indonesia, Colombia, Türkiye and Brazil.

Trump gave Iran a short Hormuz ultimatum before a brief extension, as Iran hit Qatar’s Ras Laffan. Major central banks held rates with hawkish bias on energy risks, while EM policy diverged amid fuel, trade and election strains.

Oil shock eased as Brent fell back below USD 100, but Hormuz disruption still hit supply and reserves. Brazil retail surprised positively, while Egypt saw record outflows and political strains deepened in Mexico and Brazil.

Oil rose above $100 as Middle East tensions escalated. US payrolls missed badly, China stayed productivity-focused, Indonesia’s outlook was cut, Argentina passed labour reforms, and Poland trimmed rates despite inflation risks.

Gustavo Medeiros, Global Head of Research, and Dhiren Shah, Head of Emerging Markets Equity Strategy, discuss how today’s geopolitical landscape, advances in AI, and developments in commodities are shaping EM equity allocation.

Reports say US/Israel struck Iran, killing Khamenei; oil +10% but markets calm. CNY travel record, spending middling; Koreans buy local stocks. Argentina labour reform passed; inflation beat in BR/MX/US; IMF reviews ok in Egypt.

As emerging market (EM) outperformance extends, investors are now frequently asking us about flows to EM assets. In this month’s Emerging View, we review data from Morningstar which confirms our answer: that net inflows have become a reality only since H2

EM inflows keep accelerating; Korean tech exports jump. US tariff uncertainty returns after IEEPA ruling; Fed minutes stay cautious with core PCE elevated. China to offer zero tariffs to 53 African countries from 1 May.

US data still suggests a “Goldilocks” backdrop as inflation cools; risk sentiment is shaky on AI fears but EM equities remain resilient. In EM, Brazil’s Lula has slipped to 45% approval and Mexico’s central bank held rates at 7.00% with a dovish tilt.

Watch the replay of this insightful webinar where we discussed the outlook and potential opportunities for India equities in 2026.

LDP wins big in Japan; US economy looks stable. Markets recover as volatility drops. Thai conservatives win; Argentina eyes lower inflation. Political shifts hit Colombia and SA; Mexico pauses cuts.

Warsh’s Fed nomination hit gold and BTC. While China pushes the RMB, India and LatAm adjust rates and taxes. Korea’s tech exports surge as African credit outlooks improve amid global shifts.

With politics shifting back towards the market-friendly right, earnings growth improving and the outlook for commodities becoming structurally bullish given the ongoing arms race for AI, defence and energy, Latin America is again back on investors’ radars

Yen surged on US Treasury activity amid benign US inflation. India-EU trade and Colombia/Chile fiscal reforms highlight EM shifts. Global diplomacy saw US-Ukraine-Russia talks, while Fitch boosted Türkiye and Gabon resumed IMF engagement.