Emerging markets reverse in March 2026 after early-quarter gains
Updated
Updated · PWM · May 1
Emerging markets reverse in March 2026 after early-quarter gains
14 articles · Updated · PWM · May 1
January-February gains driven by AI momentum gave way to a March sell-off as Middle East conflict and higher oil prices hit risk appetite across regions.
Emerging Asia still edged higher, helped by South Korean and Taiwanese stocks, while India fell on inflation worries and UAE equities were among the weakest performers.
A two-week ceasefire has eased tensions only temporarily, but the report argues emerging markets still offer long-term appeal through stronger earnings growth, innovation leadership and valuations well below US equities.
Beyond a few AI giants, is the emerging market investment boom just a high-risk mirage?
As digital infrastructure booms in emerging markets, what is the hidden cost to citizen privacy and rights?
Is the EM innovation boom true leadership or just a new form of high-tech dependency?
Navigating Emerging Markets in 2026: Geopolitical Shocks, Oil Prices, and AI-Driven Growth Amid Inflation Risks
Overview
In March 2026, escalating U.S. and Israeli airstrikes on Iran led to the closure of the Strait of Hormuz, disrupting 20% of global oil supply and causing Brent crude prices to surge above $100 per barrel. This spike triggered widespread risk-off sentiment, driving global stock declines and a stronger U.S. dollar as investors sought safety. Inflation fears intensified, complicating central bank policies and raising concerns of prolonged stagflation. Emerging markets diverged sharply: Latin America surged due to commodity exports, while Emerging Asia, reliant on oil imports and tech sectors, declined. Meanwhile, AI and technology remained key long-term growth drivers. Investors responded by increasing gold holdings, balancing defensive hedges with selective exposure amid ongoing geopolitical and inflationary uncertainties.