UBS On-Air: Market Moves Top of the Morning: The landscape for Emerging Market Equities
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Mar 5, 2026 Laura Smith, UBS investment specialist focused on CIO views and earnings outlooks. Xingchen Yu, Emerging Markets strategist covering geopolitics and energy impacts. They discuss Middle East tensions and oil risks. They cover recent EM volatility and rebound patterns. They review China Two Sessions priorities and sector preferences like tech, financials, and healthcare.
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Geopolitical Spikes Are Sharp And Short Lived
- Geopolitical shocks produce sharp but typically short-lived EM market moves.
- Xingchen Yu notes an ~9% two-day drop then a rebound, and expects supply disruptions to be temporary once transit and military concerns ease.
Use Volatility To Add Diversified EM Exposure
- Stay diversified and use volatility as an entry point into EM equities.
- Xingchen Yu recommends staying invested and adding exposure after outside corrections, while seeking alpha within the region like upgraded Korea exposure.
Earnings And AI Drive EM Upside
- CIO expects earnings-led upside with strong tech and AI-driven fundamentals supporting EMs.
- Laura Smith forecasts 29% earnings growth this year and 14% next year and highlights EMs' role in semiconductors, memory and rare earths.