Emerging markets to triumph in 20262026 is expected to see a decisive rotation in global asset allocation, with emerging markets (EM) positioned to outperform developed markets (DM) as the US dollar enters a weakening cycle, according to analysts. Secondly, valuations remain attractive as EM equities, particularly in Asia and China, are trading below long-term historical averages on a cyclically adjusted price-earnings basis. "Within emerging markets, Asia stands out. For Thailand, Krungsri expects economic growth in 2026 to remain modest at slightly above 2%, below long-term potential and regional peers. The bank favours selective exposure to DMs outside the US, where valuations are relatively more reasonable and earnings growth could broaden if global growth stabilises.
