The melt-up continues as the AI boom powers on
Another strong quarter for emerging and frontier markets, driven by the ongoing AI boom, lower interest rates, and a weaker US dollar. Investors are increasingly looking beyond the US as growth broadens across regions.
Highlights from Q3 2025:
- AI-driven sectors powered equity rallies in China, Taiwan and South Korea
- Chinese tech stocks rebounded strongly – Alibaba up 58%
- Brazil and other emerging markets benefit from lower interest rates
- Frontier markets, led by Vietnam, maintained strong momentum.
As global investors look beyond the US, many AI enablers in emerging markets are now being recognised for their growth potential – often at far more attractive valuations.
Read East Capital’s full quarterly commentary for insights on what’s driving market performance and where we see opportunities ahead.
Watch the latest episode of Meet East Capital – CIO Jacob Grapengiesser and Portfolio Manager David Nicholls discuss Q3 highlights, China’s rebound and the AI boom’s impact on emerging and frontier markets. Watch the episode on YouTube
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