Chips crack, Jakarta breaks.
An AI sell-off in North Asia and an index-provider warning on Indonesia and Turkey took EM to its worst week in months.
EM Week Ahead: Chips crack, Jakarta breaks
Fig. — MSCI EM (iShares EEM), one year, with 50- and 200-day averages · Source: Barchart; Lundy Intelligence
MSCI EM fell 5.2% to 1,620.6, underperforming developed markets by about four points, and closed below its 200-day average. The damage was concentrated. Korea’s KOSPI lost 14.5%, its worst week since October 2008, as memory-chip stocks were sold on Chinese competition and AI-spending doubts. Jakarta fell 11.6% on Friday alone after MSCI proposed moving Indonesia out of the Emerging Markets index; MSCI also froze changes to its Turkish indices.
India (+2.8%), Mexico (+4.4%) and Prague (+3.1%) went the other way, helped by a bond rally after the US CPI and a softer dollar. EM now trades on 9.7x forward earnings, against a 20-year average near 12x. The full edition covers 28 markets, valuations, flows and index events, the desk’s country views, and the week ahead: China’s Q3 GDP, four EM central banks and Brazil’s presidential runoff.
Read the full report
The full edition, the desk’s views and how they could be expressed, with the archive, for signed-in clients.
Client sign-in →In your Monday email
Distribution-list subscribers receive the full report by email each Monday. Not yet on the list? Ask the research desk.
Join the distribution list →Practitioner-led market commentary for information only. Not investment advice, issuer-sponsored research or a personal recommendation. Prices are closes on Friday 16 October 2026 from Barchart and the public sources named in the report. Views may change without notice. Lundy may hold interests in subjects covered.