Fund managers cite tech exposure and intra-EM trade as key drivers for maintaining positions in Korea and Taiwan amid geopolitical tensions.
Emerging market allocators remain overweight in Korea and Taiwan, driven by strong tech sector performance despite ongoing Middle East conflict and oil import risks. The partial reopening of the Strait of Hormuz has eased near-term supply concerns, though unresolved technical talks keep risks elevated for oil-dependent Asian economies like India.
China, which sources 45 percent of its oil imports from the Middle East, holds sufficient inventory to mitigate short-term disruptions. Its dominance in solar panel and EV manufacturing further buffers against energy shocks. Meanwhile, dividend-paying EM equities continue to attract income-focused capital, delivering solid returns even amid volatility.
Not all emerging markets share the same resilience. Bolivia’s decision to abandon its 15-year dollar peg is expected to trigger a 30 percent plunge in the boliviano’s free float, highlighting regional disparities in economic stability.