OneTrust Cookie Consent

Navigation

  • Skip to Content
  • Client Log In
  • Investor relations
  • Sustainability Institute
  • Subscribe
  • Contact us
  • Careers
  • Region
  • Go back to Main Menu
  • Client Log In
  • MSCI ONE
  • MSCI Client Support Site
  • Barra PortfolioManager
  • BarraOne
  • MSCI ESG Manager
  • MSCI ESG Direct
  • Global Index Lens
  • MSCI Real Assets Analytics Portal
  • RiskManager 3
  • CreditManager
  • RiskManager 4
  • Index Monitor
  • MSCI Datscha
  • MSCI Real Capital Analytics
  • Private i
  • Total Plan/Caissa
  • MSCI Wealth Manager (Fabric)
  • MSCI Carbon Markets
  • Go back to Main Menu
  • Region
  • China
  • India
  • Japan
Navigation

Navigation Menu

  • Our Clients
    • Go back to Main Menu
    • Our Clients
    • Asset Managers
      • Featured

        Insights on MSCI One
    • Asset Owners
      • Featured

        Institutional Client Designed Indexes (iCDIs)
    • Banks
      • Featured

        Total Portfolio Footprinting
    • Corporates
      • Featured

        ESG Trends to Watch
    • Hedge Funds
      • Featured

        Factor Models
    • Insurance Companies
      • Featured

        Total Portfolio Footprinting
    • Wealth Managers
      • Featured

        Visualizing Investment Data
  • Our Solutions
    • Go back to Main Menu
    • Our Solutions
    • Analytics
      • Go back to Our Solutions
      • Analytics
      • Analytics Overview
      • Risk Management
      • AI Portfolio Insights
      • Multi-asset Class Factor Models
      • Quantitative Investment Solutions
      • Fixed Income Analytics
      • Portfolio Management
      • Crowding Solutions
      • Regulatory Solutions
      • Managed Solutions
    • Climate Investing
      • Go back to Our Solutions
      • Climate Investing
      • Climate Investing Overview
      • Featured

        Implied Temperature Rise
      • Featured

        Trends 2025
      • Biodiversity
      • Carbon Markets
      • GeoSpatial Asset Intelligence
      • Portfolio Sustainability Insights
      • Real Estate Climate Solutions
    • Sustainable Investing
      • Go back to Our Solutions
      • Sustainable Investing
      • Sustainable Investing Overview
      • Featured

        Trends 2025
      • ESG Fund Ratings and Climate Search Tool
        • Featured

          ESG and Climate Funds in Focus
      • ESG Ratings
        • Featured

          What is ESG
      • Impact Solutions
        • Featured

          Role of Capital in the Net-Zero Revolution
      • Sustainability Reporting Services
      • Sustainability and Climate Regulatory Toolkit
        • Featured

          Role of Capital in the Net-Zero Revolution
    • Factor Investing
      • Go back to Our Solutions
      • Factor Investing
      • Factor Investing Overview
      • Featured

        MSCI Japan Equity Factor Model
      • Equity Factor Models
      • FactorLab
      • MSCI FaCS
      • Factor Indexes
    • Fixed Income
      • Go back to Our Solutions
      • Fixed Income
      • Fixed Income Overview
      • Fixed Income Analytics
      • Fixed Income Indexes
    • Private Capital
      • Go back to Our Solutions
      • Private Capital
      • Private Capital Overview
      • Featured

        Private Capital Benchmarks
      • Private i
      • Total Plan Manager (formerly Caissa)
      • Emissions Footprinting
      • Private Capital Indexes
      • Private Company Data Connect
    • Real Assets
      • Go back to Our Solutions
      • Real Assets
      • Real Assets Overview
      • Featured

        Real Estate Market Size
      • INCANS
      • Index Intel
      • Portfolio Services
      • Property Intel
      • Private Real Assets Indexes
      • Real Capital Analytics
    • Wealth Management
  • Indexes
    • Go back to Main Menu
    • Indexes
    • Featured

      Index Education
    • Featured

      Underlying Exchange Traded Products
    • Indexes Overview
    • By Category
      • Go back to Indexes
      • By Category
      • By Category Overview
      • Climate
      • Market Cap
      • Fixed Income
      • Client-Designed
      • Sustainability
      • Factor
      • Thematic
        • Featured

          Thematic Exposure Standard
      • Private Real Assets
      • Private Capital
    • Tools
      • Go back to Indexes
      • Tools
      • Tools Overview
      • Index Monitor
      • MSCI Index API
      • MSCI IndexMetrics®
      • Index Data Modules
      • Equity Index Constituents
      • Fixed Income Index Constituents
      • Index Profile Tool
      • Direct Indexing
    • Resources
      • Go back to Indexes
      • Resources
      • Resources Overview
      • Communications
      • Education
      • Equity Factsheets
      • Derivatives
      • Methodology
      • Performance
      • Regulation
  • Research & Insights
    • Go back to Main Menu
    • Research & Insights
    • Featured

      Navigating Uncertainty: Tariff Implications
    • Featured

      In Focus
    • Research & Insights
      • Go back to Research & Insights
      • Research & Insights
      • Research & Insights Overview
      • Carbon Markets
      • Climate
      • Equities
      • Factor Investing
      • Fixed Income
      • Multi-Asset Class
      • Private Capital
      • Real Estate
      • Sustainability
    • Events
      • Go back to Research & Insights
      • Events
      • Events Overview
      • Featured

        Upcoming climate events
      • On Demand
  • Discover MSCI
    • Go back to Main Menu
    • Discover MSCI
    • About Us
      • Featured

        2022 Annual Report
    • Technology
      • Go back to Discover MSCI
      • Technology
      • Technology Overview
      • Data Explorer
      • Developer Community
      • Technology and Data
    • Corporate Responsibility
      • Go back to Discover MSCI
      • Corporate Responsibility
      • Corporate Responsibility Overview
      • Enabling Sustainable Investing
      • Environmental Sustainability
      • Governance Practices
      • Social Practices
      • Sustainability Reports and Policies
    • Inclusion & Belonging
    • Media Room
    • Our Leadership
      • Featured

        Henry A. Fernandez
    • Recognition
  • Client Log In
  • Investor relations
  • Sustainability Institute
  • Subscribe
  • Contact us
  • Careers
  • Region
  • Go back to Main Menu
  • Client Log In
  • MSCI ONE
  • MSCI Client Support Site
  • Barra PortfolioManager
  • BarraOne
  • MSCI ESG Manager
  • MSCI ESG Direct
  • Global Index Lens
  • MSCI Real Assets Analytics Portal
  • RiskManager 3
  • CreditManager
  • RiskManager 4
  • Index Monitor
  • MSCI Datscha
  • MSCI Real Capital Analytics
  • Private i
  • Total Plan/Caissa
  • MSCI Wealth Manager (Fabric)
  • MSCI Carbon Markets
  • Go back to Main Menu
  • Region
  • China
  • India
  • Japan

Main Search

Popular searches:
ACWI Research ESG Factor Investment Insights Gallery Asset Owners
Might interest you:
New Kids on the Bloc: Opportunities in Emerging Markets

Extended Viewer

 

New Kids on the Bloc: Opportunities in Emerging Markets

 

Anil Rao
November 01, 2022

Emerging market (EM) stocks (as measured by the MSCI Emerging Markets Index) continued their year-long slide through October. And the longer-term picture wasn’t much rosier: In the decade-plus following the 2008 global financial crisis, EM stocks have barely budged while developed-markets stocks (as measured by the MSCI World index) have risen over 150%.

So how can investors approach the challenges ahead for emerging markets? Regional considerations could be insightful.

 

The diversity of emerging markets

The surging U.S. dollar and China’s growth slowdown have weighed on EM returns in 2022. In addition, the MSCI China Index has declined 40% year-to-date, as China’s zero-COVID-19 policies, struggling real estate and technology sectors, as well as headlines from the 20th National Congress of the Chinese Communist Party weigh on markets. However, we view the EM as a diverse group of regional blocs, some of which have been resilient over the past decade.

The adage of “higher risk, higher return” has not held true in EM throughout the COVID-19 era, as shown in the left-hand chart below. Countries beset with persistent inflation and political unrest, such as Brazil and Turkey, fell sharply. In contrast, Asian manufacturers in Taiwan, India and Indonesia fared relatively well. All of the Asia ex China countries (blue circles below) are now the largest bloc by market capitalization in the EM.

We found that this bloc’s performance has stood up longer term as well (shown in the right-hand chart), as the West’s deepening ties with Indian manufacturers and with Taiwan’s semiconductor industry have helped. Even domestic Chinese A shares, with their tilt towards consumer staples and industrials, have been more resilient than their technology-heavy, overseas-listed counterparts.

EM country performance during pandemic

Returns are gross in USD from January 2020 through September 2022. Larger circle sizes indicate larger country weights.

Asia ex China return following 2008 global financial crisis and during pandemic

Returns are gross in USD from January 2011 through December 2019, and January 2020 through September 2022.



Related content

The Impact of China’s New Regulations: A Thematic Lens

Recent regulatory changes in China have some investors.

Learn more

Evolution of Emerging Markets

Over the past 20 years, emerging markets have increased significantly as a share of the MSCI ACWI Index.

Read more

MSCI China A 50 Connect Index: One-Year Anniversary

The MSCI China A 50 Connect Index aims to provide investors with a mega-cap-focused index with a sector-neutral approach that tracks the broad Chinese equity market more closely than a simple top-50 approach.

Explore more

msci logo
  • Terms of Use
  • Legal
  • Modern Slavery Statement
  • Privacy notice
  • Index regulation
  • Locations
  • Cookies
  • Use of ISO standards
  • Site map
Subscribe Contact us
© 2025 MSCI Inc. All rights reserved

UtmAnalytics