Emerging Capital Markets Newsletter – 2Q26

Emerging markets showed mixed performance in 2Q26, with India supported by strong domestic demand and improving macro conditions, while China remained under pressure from weak demand and property sector concerns despite strength in IT. Brazil was weighed down by fiscal concerns, high interest rates, and political uncertainty. Looking ahead, India remains the strongest growth story, while China and Brazil offer opportunities at lower valuations, with risks from global volatility and country-specific challenges.