5 OCTOBER 2026
Emerging Markets Insights: AI, Energy and Robotics
In this month’s issue, AI, energy and robotics are creating new opportunities in emerging markets, but selectivity remains key as policy, cost and execution risks evolve.
Key takeaways
The macro
- Tariffs are reshaping global demand – but not derailing EM growth: Short-term shocks are real, but emerging economies are adapting fast, finding new markets and building resilience.
- Domestic demand is redrawing the EM map: India and China are increasingly driven by internal consumption, while smaller economies like Chile remain export-led – challenging how we classify emerging markets.
The market
- The EM race is still on – but the leaders are changing: Mexico and Brazil are gaining ground, while China and India face headwinds from trade tensions and policy missteps.
- Smaller EMs step into the spotlight: Countries like Vietnam and Malaysia are benefiting from shifting supply chains – offering fresh angles for investors tracking the next wave of growth.
The managers
- Currency and rate dynamics favour local debt: With EM currencies undervalued and real rates high, local debt markets offer attractive entry points – especially in frontier economies.
- Equity focus is shifting towards reform-led markets: China and India face valuation and policy challenges, while Brazil and Korea stand out for corporate strength and reform momentum.
Episode 3: the macro, the market and the managers
Our EM-focused solutions
Franklin Templeton offers one of the most comprehensive emerging markets platforms — combining boots-on-the-ground insight with a diverse range of active and passive strategies. With over 100 investment professionals across 22 countries, our team delivers high-conviction, stock-centric portfolios and cost-effective indexed solutions tailored to client needs.
